Here Are 35 Fiscal Measures Announced In National Budget 2027

The Honourable Davendranath Tancoo, M.P, Minister of Finance, presented the National Budget 2027 in Parliament this afternoon (Monday 12th October, 2026).

Below are thirty-five (35) fiscal measures that were announced by Minister Tancoo:

1. Introduce a limit on carried-forward losses for general trade and business: Effective January 1, 2027, businesses will be allowed to offset up to 75% of their annual chargeable profits using losses carried forward from previous years. Projected Revenue: $430 Million. This measure will ensure a balance between supporting business activity and ensuring that profitable enterprises make a fair and timely contribution to the revenues required for our national priorities.

2. Increase in Unemployment Levy: Effective January 1, 2027, the Unemployment Levy on the taxable profits of petroleum companies will increase from 5% to 8%. Projected Additional Revenue: $155 Million. This measure will ensure we have adequate resources to support workers and strengthen their development.

3. Adjustment to Withholding Tax Rates: Effective January 1, 2027, withholding tax rates on distributions will increase as follows: Non-resident individuals and companies: 8% to 10%; and Non-resident parent companies: 3% to 5%. Projected Additional Revenue: $25.1 Million.

4. Reforming the Taxation of Alcoholic Beverages: Effective January 1, 2027, Government will: Reduce excise duty rates by 25% on alcoholic beverages; Apply the revised excise rates to both locally produced and imported alcoholic beverages; and Introduce a value-based (ad valorem) customs duty on imported alcoholic beverages not benefiting from preferential trade agreements, replacing duties based on volume. These measures will provide some relief to our local manufacturers, establish greater consistency in the application of excise duties and create a more appropriate customs duty structure for imported alcoholic beverages.

5. VAT on Digital and Remote Services: Effective March 1, 2027, the Government will apply VAT to digital services supplied by non-resident providers to persons in Trinidad and Tobago. A simplified electronic registration system will be introduced for non-resident suppliers, including those providing taxable services connected to real property in Trinidad and Tobago, to register, collect and remit VAT electronically. Projected Revenue: $18 Million. This measure aims to broaden the tax base, strengthen VAT collection and ensure consistent tax treatment between local and foreign service providers.

6. Amendment to the Definition of “Payments” under the Income Tax Act: Effective January 1, 2027, Section 50(1)(b) of the Income Tax Act will be amended to clarify the withholding tax treatment of payments to non-residents for management, technical and other prescribed services. The amendment will consider where the obligation to make the payment arises and where the relevant cost is incurred. Projected Revenue: $300 Million. This measure will close a legislative loophole and protect our country’s tax base.

7. Amend Section 10 of the Income Tax Act to disallow a deduction for expenses incurred in earning exempt income: Effective January 1, 2027, Section 10 of the Income Tax Act will be amended to disallow deductions for expenses incurred in earning tax-exempt income. Projected Revenue: $75 Million. This amendment will provide greater clarity and consistency in the tax treatment of exempt income, while ensuring that tax concessions operate as intended.

8. Strengthening Tobacco Controls and Regulating Vaping Products: Effective January 1, 2027, Government will introduce stricter tobacco controls and regulations for vaping products. Possession of 10,000 or more tobacco products will constitute prima facie evidence of distribution; Importation of 800 or more cigarettes will require an appropriate import licence; Vaping in public places will be prohibited; Sale of vaping products to persons under 21 will be prohibited; and a 20% customs duty will be introduced on vaping devices and products. These measures aim to provide clearer rules for the commercial possession and importation of cigarettes.

9. Establishing a Framework for Classic, Antique and Vintage Motor Vehicles: Effective January 1, 2027, Government will introduce regulations for the importation, registration and use of Classic, Antique and Vintage motor vehicles, including revised Motor Vehicle Tax rates: Classic Vehicles: 100% increase; Antique Vehicles: 50% increase; and Vintage Vehicles: 25% increase. This measure aims to develop a niche industry around the collection, restoration and preservation of historic motor vehicles, creating opportunities for skilled trades and specialized services while supporting automotive shows, cultural events and tourism.

10. Promoting Energy Conservation and Supporting Low-Usage Households: Effective January 1, 2027, a surcharge of 5 cents per kilowatt-hour will be introduced on residential electricity consumption exceeding 3,000 kilowatt-hours per billing period. Projected Additional Revenue: $17.8 Million. The revenue generated from this surcharge will help finance the existing electricity subsidy provided to households with very low levels of electricity consumption. This measure aims to encourage energy conservation while ensuring households with moderate electricity usage remain unaffected.

11. Increase in Personal Allowance for Pensioners: Effective January 1, 2027, the annual Personal Allowance for pensioners will increase from $90,000 to $102,000. Projected Tax Relief: $11 Million. This measure aims to provide greater financial relief and security for pensioners, including retired public officers.

12. Supporting the Formalization and Growth of Agricultural Enterprises: With immediate effect, Government will develop a Farm Business Formalization Programme to assist registered farmers in formalizing and strengthening their agricultural businesses. The programme will be a one stop shop, providing support in areas such as land tenure, business registration, record-keeping, financial management, access to finance and other agricultural support programmes.

13. Building the Next Generation of Agricultural Entrepreneurs and Professionals: Government proposes to expand the Agricultural Internship Programme from 30 to 100 interns, creating more opportunities for young people across the agricultural sector. The Programme will connect young people with opportunities across the agricultural value chain, from primary production and agro-processing to technology, research, distribution and other agricultural services. Government will also explore support for interns interested in establishing their own agricultural businesses.

14. Conversion of Zero-Rated Items to VAT-Exempt Status: Effective January 1, 2027, selected items will move from zero-rated to VAT-exempt status, while zero-rating will be maintained on selected basic and essential items. These goods will continue to attract no VAT at the point of sale. This measure aims to simplify the VAT system, strengthen revenue collection, improve VAT administration and reduce pressures associated with VAT refunds.

15. Introduction of a VAT Clearance Fee: Effective January 1, 2027, a fee of $100 will be introduced for the issuance of a VAT Clearance Certificate. Projected Additional Revenue: $500,000.

16. Rationalization of VAT Registration of Government Entities: Effective within the first quarter of 2027, Government entities that do not meet VAT registration requirements will be deregistered. Entities making taxable supplies will continue to be assessed in accordance with the VAT Act. This measure aims to improve VAT administration and reduce unnecessary refund claims within the public sector.

17. Introduce a penalty for non-filing VAT Returns: Effective January 1, 2027, a penalty of $100 for every two (2) months that a VAT return remains outstanding will be introduced. This measure aims to encourage timely filing, strengthen VAT compliance and improve revenue administration. Projected Additional Revenue: $5 Million.

18. Mandatory e-filling through GENTAX: Government will introduce mandatory electronic filing through the Inland Revenue Division’s GENTAX system for all taxpayers. The system will provide a single, streamlined platform for filing tax returns electronically, eliminating the need for manual submissions. This measure aims to modernize tax administration, improve efficiency, strengthen compliance and provide greater convenience for taxpayers.

19. Increase in Penalties for False Declarations under the Customs Act: Effective January 1, 2027, the penalty for false Customs declarations under Section 212 of the Customs Act will increase from $125,000 to $250,000. This measure aims to strengthen Customs compliance and deter false declarations.

20. Increase in the Foreign Currency Declaration Threshold: Effective January 1, 2027, the foreign currency declaration threshold for travellers will increase from US $5,000 to US $10,000. This measure aims to reduce reporting requirements for travellers while allowing Customs to focus on higher-risk movements of currency.

21. Modernizing the Regulation of Customs Brokers and Customs Clerks: Effective January 1, 2027, the Customs Brokers and Customs Clerks Act, Chap. 78:03, will be amended to: Introduce an enforceable code of ethics; Strengthen licensing requirements; Restructure the Customs Brokers and Customs Clerks Board; Update offences, penalties and applicable fees; and Establish a formal appeals tribunal. This measure aims to strengthen governance, accountability and professional standards within the Customs sector.

22. Amendment to the Registration of Clubs Act: Effective January 1, 2027, registered members’ clubs will be allowed to pay their taxes quarterly instead of annually. This measure aims to improve cash flow management for clubs, encourage timely tax compliance and provide Government with a more regular and predictable flow of revenue.

23. Expanding Technical and Vocational Education in Secondary Schools: Government will provide $16.3 Million in fiscal 2027 to commence the Integrated Expansion of Technical and Vocational Education in Secondary Schools. The programme will provide: 22 priority secondary schools with workshop upgrades and equipment; 56 schools with practical learning materials; and Expanded training opportunities for practical learning in areas, including agriculture, carpentry, plumbing, electrical and electronic technology, air conditioning and refrigeration, welding, automotive systems, technical drawing, computer-aided design and steelpan manufacturing. The initiative will also support curriculum development, teacher training and career guidance to better equip students with practical skills for future employment.

24. Establishment of the READY Internship Programme: In fiscal 2027, Government proposes to allocate TT $2 million to launch the Real Experience and Development for Youth (READY) Internship Programme. The programme will provide approximately 1,300 secondary school students aged sixteen (16) and over with four-week internships during July-August 2027. Participants will gain practical work experience across the public and private sectors, alongside training in financial literacy, entrepreneurship, workplace ethics and career preparation. Each participant will receive a TT $1,500 stipend.

25. Strengthening Support for Our Most Vulnerable Citizens: Effective January 1, 2027, the following grants will increase by $250 per month: Senior Citizens’ Grant; Public Assistance Grant; and Disability Assistance Grant. Additional Government Expenditure: $555 Million.

26. Establishment of the National Care and Support Programme: Government has begun the transformation of Geriatric Adolescent Partnership Programme into a broader National Care and Support Programme comprising home care and support for: Older Persons; Persons with Disabilities; and Persons requiring temporary or short-term assistance. Each component will be designed around the needs of beneficiaries, with appropriate eligibility requirements, caregiver competencies, supervision and safeguards.

27. Increase in Penalty for Non-Payment of National Insurance Contributions: Effective January 1, 2027, the maximum fine on summary conviction for employers who fail to pay required National Insurance contributions will increase from $4,000 to $8,000. The National Insurance Board will also be empowered to waive statutory penalties in whole or in part, subject to appropriate oversight, transparency and accountability. This measure aims to strengthen compliance and protect workers’ access to National Insurance benefits.

28. Improving the National Insurance Claims and Appeals Process: In fiscal 2027, Government will undertake a comprehensive review of the National Insurance claims and appeals system to address a backlog of over 1,000 unresolved appeals. The review, supported by technical assistance from an international development partner, will identify the causes of delays and recommend solutions to improve the processing of claims and appeals.

29. National Insurance Benefit Eligibility Following the COVID-19 Shutdowns: Government proposes to amend National Insurance legislation to address benefit eligibility for workers whose contributions were interrupted by COVID-19 shutdowns. This measure aims to provide relief to workers who were denied National Insurance benefits due to disruptions in employment and contributions during the pandemic.

30. Improving the Foreign Investment Regulatory Framework: Effective January 1, 2027, Government will amend the Foreign Investment Act to simplify foreign investment procedures and improve the ease of doing business. The reforms will: Simplify rules for foreign acquisition of land and shares, including transactions up to US $100,000; Exempt CARICOM nationals from the consideration rule; Require foreign investors to disclose beneficial ownership information; and Streamline administrative processes to reduce delays. These measures aim to make foreign investment faster, simpler and more transparent while strengthening regulatory oversight. Relevant delegation arrangements will be implemented separately.

31. Improving the Administration of the Foreign Exchange Regime: Effective January 1, 2027, Government will amend the Exchange Control Act to clarify regulations governing the importation and exportation of foreign currency notes. Authorized dealers will also be required to provide full disclosure to the Central Bank on cash movements. This measure aims to strengthen transparency and regulatory oversight of foreign currency transactions.

32. Transitioning to a Permanent Regulatory Framework for Virtual Assets: Effective January 1, 2027, Government will extend the existing regulatory sandbox and introduce provisions for the full licensing of virtual assets and virtual asset service providers. This measure aims to strengthen governance, cybersecurity, consumer protection, safeguarding of client assets, financial integrity and regulatory oversight.

33. Launch of Government Savings Bond Programme: Government will launch a Savings Bond Programme, allowing citizens to invest directly in Government securities, with investment amounts of $1,000, $5,000, $10,000 or more. The bonds are intended to offer fixed interest rates, various maturity periods and options in both Trinidad and Tobago dollars and US dollars. This initiative aims to expand investment opportunities, encourage savings and support long-term financial security while strengthening the local capital market.

34. Empowering Citizens through Expanded Investment Opportunities: Government will introduce a Retail Government Securities Programme, allowing citizens to invest directly in Government bonds from as little as TT $5,000. The programme will offer securities in smaller denominations, making investment opportunities more accessible to individuals and first-time investors. Government securities will be recorded electronically through the Trinidad and Tobago Central Depository, listed on the Trinidad and Tobago Stock Exchange, and traded through licensed brokers. This initiative aims to encourage savings, expand investment opportunities and support long-term wealth creation.

35. Capital Market Deepening: Government will engage an international partner to assess Trinidad and Tobago’s Government Local Currency Bond Market. Following the assessment, a phased reform roadmap will be developed and integrated into the Ministry of Finance’s cash and debt management framework. This initiative aims to improve financial planning, strengthen cash-flow forecasting and support the development of a deeper, more efficient local bond market.

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