National Budget

Key Macroeconomic indicators
  • Real GDP contracted by 1.0 percent in 2021
  • Real GDP is estimated to grow by 2.0 percent in 2022
  • A fiscal deficit of $2.43 billion (1.3 percent of GDP) is expected for 2022
  • Expenditure is based on an oil price of US$92.50 per barrel and a gas price of $6.00 per mmbtu
  • Total Revenue for the fiscal year 2023 is expected to be $56.175 billion. Expenditure for 2023 is expected to measure $57.685 billion
  • A fiscal deficit of $1.510 billion (0.8 percent GDP) is expected for 2023

Areas of interest

Government Assisted Tuition Expenses – GATE
  • The rules for accessing GATE will be adjusted. Currently, across the board, GATE can only be accessed for one course of study. This will be amended so that students pursuing an initial or preliminary course of study such as a diploma or associate degree at an accredited institution, with a view to pursuing a bachelor’s degree after, will be allowed to access GATE for both courses of study. This also applies to students pursuing lower level Technical and Vocational Educational Training (TVET) programmes, who are desirous of moving on to an advanced diploma or bachelor’s degree.
Fuel prices
  • The prices of fuel have been increased as follows:
    Premium gasoline: from $5.75 per litre to $6.75 per litre
    Super gasoline: from $4.97 per litre to $5.97 per litre
    Diesel: from $3.41 per litre to $3.91 per litre
The Trinidad and Tobago Mortgage Bank
  • The Trinidad and Tobago Mortgage Bank, which came out of the merger of the Trinidad and Tobago Mortgage Finance Company Limited and the Home Mortgage Bank, is expected to be fully operational by 2023.
The Trinidad and Tobago Trade and Investment Promotion Agency
  • ExporTT, InvesTT, CreativeTT and some aspects of the Trinidad and Tobago Coalition of Services Industries (TTCSI) will be merged to form a single trade and investment promotion entity, the Trinidad and Tobago Trade and Investment Promotion Agency (TTTIPA).
  • The budgetary allocation to the Tobago House of Assembly is $2.521 billion (4.3 percent of the national budget):
    • $2.194 billion would be for recurrent expenditure
    • $300 million for the THA Development Programme
    • $18 million for the Unemployment Relief Programme (URP)
    • $9.2 million for CEPEP
  • $731.5 million is allocated to be spent by various government Ministries and Statutory Authorities

Fiscal Measures for 2022

Personal Income Tax Allowance
  • Increase in the personal income tax exemption limit from $84,000 to $90,000. This means, all individuals earning $7,500.00 a month or less will now be exempt from income tax.
VAT Registration Threshold
  • The VAT registration threshold will be increased from $500,000 to $600,000 to provide relief to some businesses.
Renewable Energy / Business Rebate for Agriculture
  • Approved agriculture holdings will be offered rebates up to $25,000 for the implementation of a renewable energy system such as solar or wind.
Subsidy for Housing and Village Improvement Programme
  • The maximum subsidy (Government construction) applicable for the construction of a basic two-bedroom housing unit under the Housing and Village Improvement Programme will be increased from $145,000.00 to the following levels:
    • $165,000 for construction on flat lands
    • $170,000 for construction on undulating lands
    • $175,000 for construction on hilly land.
Manufacturing Tax Credit
  • A one-time manufacturing tax credit of up to $50,000 will be introduced for companies which make an investment in new machinery, production lines and equipment.
Energy Investment Tax Credit
  • The Investment Tax Credit for energy companies will be increased from 25 percent to 30 percent to stimulate exploration and development-related investments in the energy sector.
Supplemental Petroleum Tax (SPT)
  • The current SPT concession for small onshore oil producers will be enhanced and a tiered system of SPT at lower rates will be implemented for shallow water marine operators.
Electronic Payment Providers and e-Money Users
  • A one-time tax credit will be offered to approved electronic payment providers and/or e-money issuers up to a maximum of $50,000.00 to encourage the growth of online financial transactions and aid in the development of a digital economy.
Petroleum Profits Tax (PPT)
  • The Petroleum Profit Tax (PPT) will be decreased from the current 35 percent to 30 percent for companies engaged in deep water exploration.
Illegal State Timbering
  • The fine for illegal timbering will be increased from $20,000.00 to $100,000.00.
Scrap Iron Penalties
  • The fine for stealing or illegally obtaining old metal, selling, purchasing, trading, receiving and dealing in stolen old metal, inter alia will be increased from $15,000.00 to $100,000.00.
Approved Small Company Exemption from Corporation Tax
  • Approved small companies will be exempted from paying corporation tax for a period of five to six years.
Renewable Energy
  • VAT on new equipment for manufacturing companies utilizing alternate energy technologies; renewable energy options, such as gasifiers to use biomass and harnessing renewable energy through wind, solar and water will be waived for one year.
School to Work Apprenticeship Allowance
  • An Apprenticeship Allowance will be implemented to encourage more businesses to hire persons aged 16 to 25 for short-term apprenticeship to provide them with relevant experience and exposure to the world of work. Companies will be eligible for an allowance of 150 percent for all remuneration paid under such an allowance, up to a maximum of 5 percent of the company’s total wages and salaries bill for 1 year once the company’s training programme is registered with the National Training Agency.
Fees Chargeable for Commissioners of Affidavits
  • The fees payable under the Commissioners of Affidavit Act Chapter 6:52 will be increased.
Firearm Users Licence Fees
  • All firearm license fees (FULs) under the Third Schedule of the Firearms Act Chapter 16:01 will be increased by 100 percent, with the exception of assault weapons, which will have now significantly higher license fees than other types of firearms.
Tax Amnesty
  • An amnesty on penalties and interest on taxes owed up to and including the year ending December 31, 2021, will be implemented from November 14, 2022, to February 17, 2023.
Oil Pollution
  • The penalty for oil pollution will be increased from $10,000 to $100,000.
Inter-Island Airbridge and Seabridge Travel
  • The cost of one-way travel on the airbridge will increase from $150 to $200
  • The cost of one-way travel on the seabridge will increase from $50 to $75 (standard class) and from $100 to $150 (premium class). Citizens over 60 who previously travelled standard class for free will now be required to pay $25.

NB: All fiscal measures are effective January 1, 2023.

Major Allocations

Education and Training: $7.453 billion

Health: $6.892 billion

National Security: $5.798 billion

Social grants: $5.453 billion

Works and Transport: $3.748 billion

Public Utilities: $2.823 billion

Rural Development and Local Government: $1.887 billion

Agriculture: $1.330 billion

Housing: $0.974 billion

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