PAY your portion, Finance Minister Colm Imbert intimated to the people during his 2023 budget delivered on Monday in the House of Representatives.
In what could be described as a give and take budget, the giving side of Imbert saw help for the vulnerable in society, help for young people and help for SMEs (small and medium enterprises) recovering from the pandemic. Tobago got $3 billion in benefits, direct ($2.521 billion) and indirect. There was a $210m gratuity for health workers.
He said TT is in a state of fiscal deficit and debt-servicing with no great surplus in revenue.
The taking side of the minister saw drivers face an immediate increase in the price of fuel at the pump - the sixth in the past seven years (and second this year) - the elderly no longer travel for free on the inter-island ferry and higher fares to travel to and from Tobago on the airbridge.
Labour leaders and the country's public servants were told flatly there would be no increase in the four per cent salary increase offer. The country, Imbert said, simply cannot afford any higher offer.
With the increase in the price of fuel, everyone rich or poor, can expect a consequent rise in items and services which depend on transportation - including food. Those approaching retirement soon are likely to have to work until 65.
DEFICIT NARROWS
Imbert expected earnings of $56.175 billion and spending of $57.685 billion. On a predicated global oil-price of US$90.50 and gas price of US$6.00 MMBtu, he anticipated $25 billion in energy revenues, $30 billion in non-energy and $1 billion in capital revenue.
He said TT's finances were improving - with US$4 billion balance of payments, US$6.8 billion in reserves and debt-to-GDP at 70 per cent .
Imbert announced $210 million for gratuities to 20,000 "exemplary and heroic" healthcare workers for their pandemic service. He said people earning $7,500 or less per month, would pay no income tax.
Youngsters at tertiary level who have already accessed GATE for diplomas, associate degrees or N1 exams may now do full degree/tech voc training, with $50 million in extra going towards GATE.
To remedy TT's pandemic fallout on learning, he announced a new pre-CSEC lower secondary school proficiency exam.
He promised a 150 per cent tax break to any company taking on youngsters as apprentices, and mooted a national service programme and six youth development centres.
"To incentivise further and create a more agile and robust manufacturing sector, I propose to introduce a one-time manufacturing tax credit for companies which make an investment in new machinery, production lines and equipment." This would be a tax credit of up to $50,000, costing the government about $50 million.
"I am waiving VAT on new equipment for manufacturing companies utilising alternative energy technologies/renewable energy options." He named biomass, wind, solar and water energy.
OIL AND GAS HELP
For oil/gas firms he increased the investment tax credit from 25 to 30 per cent, and cut supplement
