Trinidad & Tobago Budget 2017 Caveat The Trinidad & Tobago Budget 2017 is based on the Economic Policy Statement, entitled Shaping a Better Future: A Blueprint for Transformation and Growth , delivered by the Minister of Finance, the Honourable Mr. Colm Imbert, in Parliament on 30 September 2016. This review summary was prepared by Ernst & Young and is intended for the benefjt of our clients and associates as a general guide. Readers are encouraged to consult with professional advisors for advice concerning specifjc legal, accounting or tax matters before making any decision. This publication is distributed with the understanding that Ernst & Young Services Ltd. or any other member of the Global Ernst & Young organization is not responsible for the result of any actions taken on the basis of this publication, nor for any errors or omissions contained herein. Ernst & Young Services Limited 5/7 Sweet Briar Road St. Clair, Port of Spain Trinidad, W.I. Tel.: (868) 628-1105 Fax: (868) 622-0918 Email: ey.caribbean@tt.ey.com Website: www.ey.com/caribbean 30 September 2016 EY Focus on Trinidad & Tobago Budget 2017
Chairman’s Message Despite the economic challenges faced by Trinidad & Tobago (T&T) and other oil and energy producing nations, we are steadfastly optimistic and strongly believe that this country can implement measures in the short to medium term that will lead to sustainable economic growth in the future. To achieve stability, the government’s policy framework should consider the following: 1. How to manage the country’s current spending levels over the medium term. 2. How to increase the country’s capacity to grow and broaden the country’s tax revenue base. 3. How to prioritize capital outlays and develop an industrial policy with a focus on private sector led investment and diversifjcation efforts. 4. How to create stronger institutions and create a better enabling environment. The government is, however, faced with the immediate task of reducing expenditure against a backdrop of declining energy revenues and a weakening fjscal position, as well as signifjcant pressure being exerted on the country’s foreign exchange reserve position. In the long term, we look forward to the development of the Vision 2030 plan, which we assume will be focused on achieving economic diversifjcation and the development of new industries and sources of economic activity. To improve our economic fortunes, tough decisions will have to be made in the short term and Table of contents we must all be prepared to bear our fair share of this adjustment. We are, however, confjdent that with the right focus and execution, T&T will emerge stronger, with a stable and diversifjed economy going forward. Chairman’s message .............................................................................1 Executive overview ...............................................................................2 We thank you all and we welcome your feedback. 2017 fjscal measures ............................................................................5 Income tax computation comparative ..................................................16 Energy sector review ..........................................................................18 Colin Soo Ping Chow Insurance bill ......................................................................................20 Executive Chairman EY Caribbean Ltd. FATCA ................................................................................................22 Analysis of tax revenues ....................................................................26 Analysis of recurrent government expenditure ....................................28 Status of fjscal measures 2016 ...........................................................30 Guyana - New prospect .......................................................................34 EY Focus on Trinidad & Tobago Budget 2017 | 1
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