Senior Reporter
kevon.felmine@guardian.co.tt
Finance Minister Dave Tancoo is urging businesses to share responsibility for national development, warning that passing on the burden of higher taxes to consumers could backfire in an increasingly informed, price-sensitive market.
Tancoo said while he expects greater business activity in fiscal 2026, citizens are unlikely to tolerate companies that simply shift the tax load.
Speaking at the Chamber of Industry and Commerce’s annual Post-Budget Meeting at C3 Centre, Ste Madeleine, yesterday, Tancoo said he assumed that businesses would recognise their role in helping build T&T.
He cautioned that a profit-only approach could ultimately shrink their earnings.
“If all they are focused on is their own private profit margins, they will see those margins fall as consumers move elsewhere,” Tancoo said.
Several analysts have predicted inflationary pressure from new taxes on financial institutions and property. Tancoo said while many expect businesses to pass those costs to consumers, today’s digital-savvy population will not be easily misled.
“Everybody knows who is renting, where is renting, what the prices are in South, and what the prices are in Tobago. Everybody now has easier access to information, and Trinidad and Tobago are street-smart people. We are very, very intelligent people. We will go where the best deals are, so businesses have to step up,” he said.
Among the new measures is the Landlord Business Surcharge, calculated on actual rental income.
All landlords must register with the Board of Inland Revenue and pay a one-time $2,500 registration fee.
“When you look at it generally, the figure may sound massive: $2,500 for a building with three or four apartments. Divide that figure between the apartments, then by 12 months, and you’ll see it’s actually very small.”
The Opposition has labelled the measure a disguised property tax, but Tancoo dismissed that claim. He said the previous administration’s property tax was based on an assumed rental value of both residential and commercial properties, while this measure targets only commercial activity to ensure fairness.
“So your home, whether it was generating an income or not, would have had to pay a tax as if it were generating something. This is completely different. This is only commercial activity. It’s unethical, inappropriate, and illegal for persons to engage in business and not pay their fair share.”
From January 1, 2026, a new electricity surcharge of $0.05 per kilowatt-hour will apply to commercial and industrial users.
Instead of discouraging businesses from passing on costs, Tancoo urged citizens to consider the minor impact of the increase.
During a question-and-answer session, energy economist Gregory McGuire questioned the Government’s environmental stance.
He said lowering the price of super gasoline and relaxing age limits on imported used vehicles seemed to contradict global carbon reduction targets, especially as electric vehicle (EV) imports will now be taxed.
He said it appeared the changes would lead to more gasoline being burned while EV importation is being taxed.
However, Tancoo denied any contradiction, saying the Government must balance its climate commitments with citizens’ practical needs.
“We cannot simply close our eyes and insist that we will do away with all other vehicles because the rest of the world wants us to improve our carbon footprint. We must marry national needs, national desires, and national wants with international requirements.”
Tancoo clarified that EV import requirements remain unchanged, but the new tax applies to high-end brands.
He said some imported EVs now cost over $400,000 with cost, insurance, and freight, while the models driven by most citizens fall below that threshold.