The PNM government has been committed to implementing tax reforms that benefit the citizens of Trinidad and Tobago.
The Women’s League of the People’s National Movement made the position known as it condemned the United National Congress and its leader, Kamla Persad-Bissessar, for what it described as their continued dissemination of false information regarding the Inheritance Tax.
It said over the years and most recently in the last budget, the government introduced several tax breaks that provide tangible relief and stimulate economic growth across various sectors:
- Personal Income Tax Allowance: Recognizing the importance of supporting working families and promoting economic growth, the government has increased the personal income tax exemption limit from $84,000.00 to $90,000.00 per year. This move ensures individuals earning $7,500.00 a month or less are now exempt from income tax, putting an additional $1,500.00 per year into the pockets of over 300,000 taxpayers.
- VAT Registration Threshold: To support small and medium enterprises, the government has raised the VAT registration threshold from $500,000.00 to $600,000.00. This measure aims to alleviate the financial burden on businesses and foster the growth and development of the sector.
- Renewable Energy/Business Rebate for Agriculture: The government recognizing the symbiotic relationship between renewable energy and agricultural production. In line with this, they are offering rebates of up to $25,000.00 for the implementation of renewable energy solutions, such as solar and wind energy, in approved agricultural holdings.
- Subsidy for Housing and Village Improvement Programme: Acknowledging the success of the Housing and Village Improvement Programme , the government introduced a three-tiered subsidy structure which will increase the maximum subsidy for the construction of a basic two-bedroom housing unit to levels of $165,000.00 for construction on flat lands, $170,000.00 for construction on undulating lands, and $175,000.00 for construction on hilly lands.
- Manufacturing Tax Credit: To enhance the manufacturing sector, the government proposed a one-time tax credit for companies investing in new machinery, production lines, and equipment. This tax credit can be utilized against the corporation tax liability of approved manufacturing companies, with a maximum credit of $50,000.00.
- Energy Investment Tax Credit: To stimulating investments in the energy sector proposed a plan to increase the Investment Tax Credit for energy companies from 25 per cent to 30 percent. This measure aims to encourage exploration and development-related investments in the industry.
- Electronic Payment Providers and e-Money Issuers: In support of the growth of online financial transactions and the development of a digital economy, the government proposed a one-time tax credit of up to $50,000.00 for approved electronic payment providers and e-money issuers.
- Renewable Energy: To promote the adoption of renewable energy technologies, the government waived VAT on new equipment for manufacturing companies utilizing alternate energy sources such as biomass, wind, solar, and water.