Here Are TWENTY-FIVE (25) Key Fiscal Measures For Budget 2025/2026
The highly-anticipated Budget 2025/2026 was presented at 1:30 PM on Monday afternoon (13th October, 2025) in Parliament by the Honourable Davendranath Tancoo, M.P., Minister of Finance. The theme of the budget was “T&T First: Building Economic Fairness Through Accountable Fiscal Policies.”
According to the Ministry of Finance, the “T&T First” budget was “focused on fairness, discipline, and delivery. We are putting people first, protecting the economy, and holding government accountable to every dollar spent.”
One of the first measures announced was the reduction in the price for super gasoline by $1.00 per litre, with immediate effect.
Education and Training received the largest allocation in the budget at $8.766 billion, followed by Heath at $8.214 billion and National Security at $6.366 billion.
Below are twenty-five (25) Key Fiscal Measures for Budget 2025/2026, as announced by the Honourable Davendranath Tancoo, M.P., Minister of Finance:
1. Levy on the Assets of Commercial Banks & Insurance Companies Operating in Trinidad and Tobago
Introduction of an Asset Levy of 0.25%, which is to be charged against the assets of commercial banks and insurance companies operating in Trinidad and Tobago.
Importantly, the Asset Levy will not be applied to financial institutions and insurance companies operating under the provisions of the Special Economic Zones Act.
This measure will become effective from 1st January, 2026, and is expected to contribute $575 million annually to revenues.
2. Introduction of a Landlord Business Surcharge
This Landlord Business Surcharge, based on actual rental income, will broaden the tax revenue base, promoting fairness, transparency and accountability.
This measure requires all landlords to register with the Board of Inland Revenue (BIR) and pay a one-time registration fee of $2,500.00.
The surcharge will be applied as follows:
- 2.5% of the gross annual rental income of $20,000.00 or less; and
- 3.5% of the gross annual rental income exceeding $20,000.00.
This measure takes effect on 1st January, 2026, and is expected to yield a minimum of $70 million from the one-time registration fee.
3. Electricity Surcharge
The introduction of an Electricity Surcharge as a targeted fiscal measure to address the growing cost of electricity subsidies and promote efficiency in energy use.
The surcharge will take the form of a fixed, bill-level charge of $0.05 per kWh for Commercial Customers and Industrial Customers.
It must be noted that our electricity rates will remain substantially below those of our trading partners.
Essential public services such as schools, hospitals and street lighting will be exempted.
At current consumption levels, this initiative is estimated to contribute an additional $269 million to revenues.
This measure takes effect on 1st January, 2026.
4. Increase in Fees, Charges and Excise Duties
It is important to note that 80% of the projected revenue increases are attributable to Customs Duties on Rum and Spirits, Beer and Tobacco products. Therefore, the following amended duties are proposed:
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Included in the list of fees to be amended are:
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These measures will contribute an additional $1 billion to revenues.
The increase in Customs Duties on Rum and Spirits, Beer and Cigarettes will take immediate effect.
The increase in other Fees, Charges, and Licences will take effect from 1st January, 2026.
5. Customs Duties on Luxury Electric Cars
Data reveals that significant foreign exchange has been used to import high-end electric vehicles, which attract no Customs Duty, Motor Vehicle Tax and Value-Added Tax.
We recognize the importance of electric vehicles in reducing carbon emissions and propose adjusting the applicable taxation regime to preserve relief levels for mid to lower-priced vehicles.
Accordingly, I propose the following on vehicles whose CIF value exceeds $400,000:
- A rate of duty of 10%;
- VAT of 12.5%; and
- A tiered rate of Motor Vehicle Tax applicable to the Electric Motor Size will be applied on vehicles whose CIF value exceeds $400,000.
At current demand, this initiative will contribute an additional $40 million to revenues.
This measure takes effect on 1st January, 2026.
6. Taxation on Single-Use Plastics
Single-use plastics contribute heavily to clogged waterways, land and marine pollution, and overburdened waste management systems; ultimately harming public health, biodiversity and the economy.
The proposed introduction of a 5% tax on the CIF value of these products at the point of importation.
The proceeds will be earmarked to support national recycling programmes, waste management initiatives and public environmental education.
This measure will take effect from 1st January, 2026.
7. Establishment of a Real Estate Investment Trust in Trinidad and Tobago
The establishment of a State-Sponsored Real Estate Investment Trust (REIT), a landmark initiative to democratize State-owned assets, strengthen and diversify our capital market and broaden public participation in national wealth creation.
Through this vehicle, high-value income-generating properties such as land, office buildings and commercial infrastructure will be transferred into a professionally managed REIT.
Shares will be listed on the Trinidad and Tobago Stock Exchange, allowing both ordinary and institutional investors to earn regular dividends from real estate.
8. NIF Bond
In Fiscal 2026, the National Investment Fund Holding Company Limited (NIF) will launch a $1 billion NIF Bond.
This Bond will be backed by 21% of the shareholding of First Citizens Group Financial Holdings Limited (FCGFH) valued at approximately $2 billion, while the Government retains Indirect and Beneficial Ownership of the majority of FCGFH at 60.11%.
This Bond will be issued in the second quarter of Fiscal 2026.
9. Penalties on Offences
To ensure stricter adherence to the law, we propose more rigorous consequences for non-compliance on the following:
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These increases in Penalties will contribute an additional $180 million to revenues.
These amendments will take effect from 1st January, 2026.
10. Removal of Motor-Vehicle Tax Concessions for Returning Nationals
The removal of Customs duty relief and related tax concessions (Valued Added Tax and Motor Vehicle Tax) on motor vehicles imported by returning nationals.
This measure will take effect on 1st January, 2026.
11. Subsidy on Liquified Petroleum Gas (LPG)
Amend the subsidy on LPG cylinders of 100 pounds and above by $0.50 per pound.
The price of cylinders below 100 pounds, including the standard 20-pound cylinders, will continue to be subsidised at the same rate and will not change.
These amendments will take effect on 1st January, 2026.
12. Safeguarding our National Insurance System
The National Insurance System (NIS) safeguards the dignity of retirees and provides income security for workers and their families. Today, annual benefit expenditure is well over $6 billion — an increase of more than 65% over the last two (2) decades.
Since 2020, benefit pay-outs have consistently exceeded contributions, forcing the NIB to liquidate its assets to meet obligations. The 11th Actuarial Review projects that, if nothing is done, the Fund will be depleted by 2033 to 2034.
We will not allow the Fund to collapse, jeopardizing the very benefits that over 200,000 of our most vulnerable citizens depend on.
13. Amendment to NIB rates
To minimize the burden on contributors, I propose a phased approach: implementing a 3% increase in the contribution rate effective 5th January, 2026, followed by another 3% increase from 4th January, 2027.
Beginning in January 2028, the age at which a person can receive a full NIS retirement pension will gradually increase over a 10-year period
Starting in January 2028, the age for a full NIS pension will increase by 1-year every two (2) years until it reaches age sixty-five (65) in 2036. This means that to access the full minimum pension of $3,000:
- From January 1, 2028, to December 31, 2029, a retiree must be 61 years of age;
- From January 1, 2030, to December 31, 2031, a retiree must be 62 years of age;
- From January 1, 2032, to December 31, 2033, a retiree must be 63 years of age;
- From January 1, 2034, to December 31, 2035, a retiree must be 64 years of age; and
- From January 1, 2036 onward, a retiree must be 65 years of age.
For clarification, these adjustments mean that the retirement age for a full NIS pension will move from sixty (60) to sixty-five (65) over the next decade.
Persons who retire early will still receive a pension, but at a reduced rate.
These measures are projected to extend the life of the NIS Fund, securing pensions for today's workers and tomorrow's retirees.
14. Research and Development Impact Fund UWI
An allocation of $10 million will be provided to the UWI RDI Fund in Fiscal 2026.
This will encourage more of our researchers and innovators to focus on areas critical to national development, such as climate resilience, citizen security, sustainable agriculture and health innovation.
15. National Innovation and Incubator Programme
This Programme will provide 100 young graduates and aspiring entrepreneurs with the mentorship, financing and structured support required to transform ideas into viable businesses, and expand the base of small and micro-enterprises towards economic diversification.
In Fiscal 2026, the Government, through an allocation of $15.75 million, will partner with the Unit Trust Corporation (UTC) and UWI Ventures Limited.
This Programme will commence in January 2026.
16. Period Poverty Intervention
The Ministry of Finance and the Ministry of the People, Social Development and Family Services will collaborate to establish a Women's Health Fund.
The Government will provide an initial seed capital of $5 million. We will also partner with other stakeholders to ensure the sustainability of this initiative. This Fund will be used to:
- Launch a pilot programme to provide distribution of free menstrual kits in educational institutions; and
- Provide education and sensitization on menstrual health for various groups — including men and boys — to foster inclusivity and dismantle stigma.
A tax incentive will be provided to encourage individuals and corporations to contribute to this Fund.
This initiative will commence in January 2026.
17. eLEVATE TT
The introduction of the eLEVATE Programme to upskill 15,000 educators, helping them incorporate and modernize their teaching methodologies using 21st-century technology.
The Government will allocate $5.72 million to this programme, which will deliver relevant, flexible and modern professional development aligned to national priorities and the 2025 - 2030 Education Policy.
18. NEXTCLASS
The NEXTCLASS programme aims to create an Al-powered user interface platform that empowers teachers with the resources to enhance their teaching effectiveness and foster a more personalised learning environment.
Every teacher will gain access to a single platform hosted by the Ministry of Education, featuring lesson planning, real-time student tracking, automated grading support and professional development tools. The Government will invest $4.64 million in this programme.
This Programme will commence in January 2026.
19. The PEARL Project: Promoting Early Assessment for Resilient Learners, “Assess Early, Educate Fully”
This programme will embed universal screening in our schools, ensuring that difficulties are identified and addressed early before they limit a child's potential.
Through the alignment of the Ministry of Education, the Ministry of Health, and the Ministry of the People, Social Development and Family Services, PEARL will guarantee parents and students a seamless medium of care and attention.
The Government will allocate $7.89 million to this programme, which will commence in January 2026.
20. Tax Concession for Corporate and Individual Contributions to Registered Animal Shelters
The Corporation Tax Act, Chap. 75:02 will be amended to allow companies that make financial contributions to registered animal shelters approved by the Minister of Agriculture, Land and Fisheries to claim such contributions as a deduction in computing their chargeable profits.
The deduction will be capped at the lower of 15% of chargeable profits or $100,000 per year of income.
Proposed amendment to The Income Tax Act, Chap. 75:01 to provide a stand-alone deduction for individuals who support registered animal shelters.
To qualify, the shelter must be registered under the Non-Profit Organisations Act, 2019 or the Companies Act, Chap. 81:01, and approved by the Minister of Agriculture and Fisheries.
The deduction will be capped at the lower of 20% of the individual’s total income or $20,000 per year. These amendments will take effect on 1st January, 2026.
21. Agricultural Incentives
The Government’s focus is to make food more affordable to every citizen by supporting increased and sustainable agricultural production.
The following is proposed:
- to remove VAT from all machinery and equipment intended explicitly for agricultural use;
- to remove VAT from all components used explicitly in hydroponic farming and greenhouse farming, if not already specified elsewhere;
- the review of Paragraph 5 of Schedule 2 of the VAT Act to provide a comprehensive classification for zero-rated preparations and chemicals to ensure farmers have access to a full range of cost-effective inputs for cultivation and animal health; and
- the removal of Customs Duty from feed used for poultry, cattle and pig.
These amendments will take effect from 1st January, 2026.
22. VAT on Food Items
The removal of Value Added Tax from a multiplicity of basic food items.
These items will include table salt, mauby, coconut water, as well as locally-produced pumpkin, watermelon, cucumber, lettuce and tomatoes, amongst others.
23. Amendments to The Policy on Importation of Foreign Used Vehicles
- An increase in the permissible age of importation of private cars (SUVs, sedans and station wagons) which are powered by gasoline, diesel or CNG from three (3) years and under, to six (6) years and under, from the date of manufacture; and
- An increase in the permissible age of importation of light commercial vehicles (pickups and panel vans from seven (7) years and under, to ten (10) years and under, from the date of manufacture.
This measure will take effect from 1st January, 2026.
24. Removal of Tax on Private Pensions
Private Pensions be exempted from Income Tax.
These amendments will take effect on 1st January, 2026.
25. Reducing the Cost of Construction Materials
To further stimulate the economy, particularly in the area of construction, I propose that the negative list under the Trade Ordinance be amended to remove item no. “(i) 4. Clays, crushed limestone, boulders, sand, gravel, plastering sand, porcellanitic, argillite, oil sand.”
This will provide a much-needed impetus to the construction sector and is expected to reduce the cost of building materials and the cost of construction, generally.
This will also boost employment in plumbing, electricals, tiling, masonry, carpentry and fabrication industries, amongst others.
These amendments will take effect on 1st January, 2026.
If you missed the National Budget 2026 presentation, you can watch it in its entirety here.
More on this as it becomes available.
This is a developing story - refresh this page for updates.
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