00:00Topping the news tonight, back pay for workers, an increase in the personal allowance for pensioners,
00:05increases in a number of state grants, an increase in the electricity searcharge for some residential customers,
00:11as well as a number of tax reforms.
00:14These are some of the announcements today by Finance Minister Devendra Naftanku
00:18as he presented the Budget 2027 under the theme, A People-Centered Approach,
00:24Investing in Communities, Transforming the Economy and Securing a Sustainable Future.
00:30Vanessa Cutting has the details.
00:33A commitment from government to make good on the payment of back pay to various groups of workers in fiscal
00:392027,
00:41namely the PSA, NUGFW, Porto Spain City Corporation, San Fernando City Corporation and the Defence Force.
00:50Together, this represents close to $2.5 billion,
00:57which we are putting into the hands of current and retired public officers.
01:04Government's 2027 People-Centered Budget also puts more money into the pockets of the most vulnerable.
01:11To increase the Senior Citizens Grant, the Public Assistance Grant, the Disabilities Grant by $250 per month,
01:19these measures will cost an additional $555 million and will take effect from January 1, 2027.
01:29Pensioners will also be able to save thousands annually.
01:33I therefore propose to increase the personal allowance for pensioners from $90,000 to $102,000 per year.
01:50This measure will provide approximately $11 million in tax relief to our pensioners
01:58and will take effect from January 1, 2027.
02:02And with Forex availability still a bugbear for many,
02:06government has moved to relax its declaration policy.
02:10I propose to increase the foreign currency declaration threshold from $5,000 to $10,000 U.S. dollars.
02:18This threshold is also consistent with the benchmark used in a number of other jurisdictions.
02:24The measure will take place from January 1, 2027.
02:28However effective January 1st,
02:31some TNTEC customers will be out of pocket for an increase in their electricity bills.
02:36I therefore propose to introduce an electricity surcharge of $0.05 per kilowatt hour
02:43on residential consumption above 3,000 kilowatt hours per billion period.
02:52This threshold will ensure that average households with moderate levels of electricity usage remains unaffected.
03:02The government has also made a number of changes to the tax regime,
03:06including the introduction of a $100 VAT clearance fee,
03:10a penalty for the non-filing of VAT returns,
03:13and mandatory e-filing.
03:15A number of zero-rated items will also be moved to VAT-exempt status.
03:20Taxes on classic, antique and vintage motor vehicles are also set to increase.
03:26Fuel prices remain unchanged.
03:28Meantime, imported alcoholic beverages should be more affordable in 2027,
03:34as excise rates will be reduced by 25%.
03:38We will also reform the customs duty structure on imported alcoholic beverages
03:44by moving from the existing specific duties charged by volume to an ad volume rate
03:51based on the value of the product.
03:53What that means, Mr. Speaker, is that luxury alcoholic beverages
03:59will now attract a higher duty.
04:05And while young people may not be able to consume alcohol until age 21,
04:11the government has made it easier for them to get valuable work experience.
04:15The government also proposes to allocate $2 million in fiscal 2027
04:20to launch the Real Experience and Development for Youth Internship Program ready,
04:25providing approximately 1,300 secondary school students ages 16 and over
04:31with a structured work experience during the July to August vacation period.
04:37Each participant will receive a stipend valued at $1,500.
04:43The government will also operationalize a Motor Vehicle Accident Victims Fund in 2027.
04:50Renessa Cutting, TV6 News.
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