2015/2016 Budget - Trinidad & Tobago

[bluefete]

From Ernst and Young: Property Tax -

Residential and Commercial Properties

• Residential properties will be taxed at the rate of 3% of ATV while the
applicable rate for commercial properties is 5%. With respect to residential
and commercial properties, the ATV is the expected annual rent and not
the present market capital value of the property.

• Whether a property is owner occupied or presently tenanted would not
change the ATV valuation methodology which would be based upon
expected annual rental income in all instances.

• Residential property would be categorized into five distinct classes,
namely: executive, modern, standard, sub-standard and shack and
the applicable expected annual rental rate would be determined by a
combination of the location of the community in which the home is
situated and the type of classification applied.

With respect to residential properties, the Annual Taxable Value (ATV) is
the expected annual rent to be obtained from T&T resident tenants and, as
such, rental rates expected to be obtained from expatriate tenants would
not form the basis for assessments.

[bluesclues]

there is alot of cost for running a brick and mortar store that are hard to compete with online shopping and pricing scheme reflects that .e,g,

-green tax
-cott
-rent
-staff
-cleaning / regular maintenance
-rental of linx / credit card machines
-vendor pays part of transactions for cc purchases - some stores don't use c.cards
-customs / duties / transport / stocking /stock keeping


the biggest factor being rent - especially if in a mall ....
if one builds an outlet, one needs to recover that investment and it would be reflected in the pricing scheme as well...



in essence - shopping online would almost always be cheaper...

precisely where i was going with the point. we have to let the markets regulate themselves. the government according to the budget has already planned the implementation of a great increase in efficiency and productivity in the country. we have no need to try to push for more than that in the 1st year. the free market will determine pricing across the board. including at that most important factor for brick and mortar establishments paying rent and in the mall etc. the rent price will have to drop. simple! why are landlords being protected through policies as though they immune from all the advances of the economy and regulation by the free market?

business owners should also see about improving their business model, internal efficiency etc as well.

[The_Honourable]

Aside from taxes, These costs are undertaken by the entrepreneur because he/she foresees an appropriate return for their investment. Trinidad lacks a proper online platform so one may argue that they have no choice but to do B&M operations. In any event, it might be more fruitful for these sellers to lobby the government to setup the right institutional and financial framework to facilitate local e-commerce rather than lobbying for protectionist measures.

Was looking for the words but you beat me to it. Well said sir.

[Daran]

Can any economists here answer these questions?

1. Why theoretically or perceptually increase disposable income if you're stating people need to tighten they belt?

2. Given that Trinidad's economy is very reactionary and hence prone to unnecessary inflation and thus increasing transportation costs, no matter how minimal will lead to a corresponding increase in inflation, across the board. Therefore, the reduced taxes (theoretically) may have been a 'peace' offering to thank the populace for their votes and also an indirect apology for removing the gas subsidy. However, aren't those two measures some of the biggest stimulus to inflation?

My question to econometrics modeling folk is:
3. Does the perceived disposable income in tandem with increased cost living act like a positive feedback loop with regards to inflation? Or do they cancel out?

A scenario I can foresee happening in Trinidad is: businesses raising prices and people spending more (because honestly, unless something drastic happens most trinis won't cut back). Overall good for the local economy, but this can definitely lead to out of control inflation which has always been poorly managed, especially by the PNM.

And if that does happen, especially if the rapid rail project becomes a reality. What can be said about our future dollar value and purchasing power?

[zoom rader]

When is PNM budget again?

[halfbreed_1]

i heard that passport renewal is free is that true?

[zoom rader]

i heard that passport renewal is free is that true?

Yeah if you over 60

[halfbreed_1]

i heard that passport renewal is free is that true?

Yeah if you over 60

ah i see

[Habit7]

[zoom rader]

1444245155627.jpg

Well let's hope Imbert dont allow himself to be played by Evil trin businessmen.
Just the thought of taxing online shopping will make trini sick.
If they do bring a tax on online shopping then riots will take place.
We already getting the fumes of PNM taxation to come . Meanwhile businessmen paying little or no taxes while the blunt is on the shoulders of everyday citizens

[Redman]

He was responding to a question...and his response was that he had looked at taxing the online shopping from the stand point that it is putting real pressure on the forex supply.

But frankly TnT imports EVERYTHING so taxing the online purchase is just transferring the pressure from the online shoppers credit cards to the business men importing the goods.

[Miktay]

We know there will always be a markup. I don't think we have a problem paying a markup and I think many people would prefer to buy locally. However, even when you consider rent, staff etc. (which I do sometimes) the markups we see are highly questionable and seem to be more advantageous.

When you shop around locally it gets even more apparent. Within one mall, three different stores have noteably different prices. Talking at least $40-$50 difference, not a few dollars.

We also have to remember, the prices we see on Amazon etc. already have a markup! They are not being sold at wholesale prices. So....

The PNM are talking about consultation, I hope they consult the general public on this before any decision is made

Why local bidnezz would want to directly compete with Amazon and Skybox continues to amaze me.

Amazon doesn't consistently make money. Its heavily subsidized by its stock and bond holders.

No matter how price un-competitive or the lousy customer service offerred...locals can hardly compete with Amazon's huge subsidy.

Local bidnezz has to make money to survive.

That said I'd buy Amazon over local most of the time. If Amazon's investor's want to subsidize my purchases...I ent complaining one lil bit.

[De Dragon]

Can any economists here answer these questions?

1. Why theoretically or perceptually increase disposable income if you're stating people need to tighten they belt?

2. Given that Trinidad's economy is very reactionary and hence prone to unnecessary inflation and thus increasing transportation costs, no matter how minimal will lead to a corresponding increase in inflation, across the board. Therefore, the reduced taxes (theoretically) may have been a 'peace' offering to thank the populace for their votes and also an indirect apology for removing the gas subsidy. However, aren't those two measures some of the biggest stimulus to inflation?

My question to econometrics modeling folk is:
3. Does the perceived disposable income in tandem with increased cost living act like a positive feedback loop with regards to inflation? Or do they cancel out?

A scenario I can foresee happening in Trinidad is: businesses raising prices and people spending more (because honestly, unless something drastic happens most trinis won't cut back). Overall good for the local economy, but this can definitely lead to out of control inflation which has always been poorly managed, especially by the PNM.

And if that does happen, especially if the rapid rail project becomes a reality. What can be said about our future dollar value and purchasing power?

More disposable income is supposed to be like the foundation of stimulating a stagnant or recessionary economy, because that disposable income is usually spent on items which increase taxation revenues. Our problem is that we lack the necessary protection from businesses who raise their prices arbitrarily. For example, WHILE the budget was being read, gas stations in Couva shutdown temporarily until the proposed gas hike was announced and then proceeded to raise their prices instantly. This is pure profiteering, as that gas/diesel was purchased at a pre-increase price.
I also question the legality/morality of raising a price based solely on a budget proposal, rather than one which has yet to be debated/passed.

[pete]

Mr. Imbert, the Minister of Finance said IMMEDIATELY.

From the Act:

31. (1) The Minister, after consultation with the Minister of
Finance, is hereby authorised and required by Order to fix the
prices or the basis for determining the price at which petroleum
products may be disposed of or are to be deemed to have been
disposed of by the refining business of any person to the
marketing business of such person or any other person for
disposal and use in Trinidad and Tobago.
(2) The disposal shall be deemed to have taken place
even though the same person carries on both the refining business
and the marketing business.
(3) In addition to the duty imposed on the Minister by
subsection (1), the Minister may by Order fix the price or the
basis for determining the price at which petroleum products may
be sold by a person carrying on marketing business or by a
marketing licensee or by any other person carrying on a business
of dealing in petroleum products for use in Trinidad and Tobago.
(4) An Order made under this section may be expressed
to relate to a particular person or to a particular class or classes of
persons, whether by way of the exclusion of any transactions of
that person or between any class or classes of persons therefrom,
or otherwise.
(5) Where an Order is made relating to the sale of
petroleum products to any person for use as bunkers for fishing
or shrimping trawlers, every such sale shall, for the purposes of
this Act and the Petroleum Production Levy and Subsidy Act, be
deemed to have been a disposal for use in Trinidad and Tobago.
(6) In this section—
“marketing business” means the business of dealing in petroleum
products by way of the purchase thereof from a refining
business for sale and use in Trinidad and Tobago;
“marketing licensee” means a person to whom a marketing
licence, within the meaning of regulation 3(1)(h)(iii) of the
Petroleum Regulations, is issued under and in accordance
with this Act and those Regulations;
“refining business” means the manufacture from petroleum of
finished and partly finished petroleum products by a refining
process and the disposal of such products from the refinery.

[Numb3r4]

Why doesn't someone look into the operation of the TTBS so that the consumer has a little bit more power when buying in Trinidad?

In addition to letting the free market dictate the pace.

[Daran]

Whey this tata come out from? Rofl

[K74T]

Floating on fb a while now, far from accurate.

[Redman]

whats the point of those lists?

[Daran]

Not sure, saw it on Facebook just now, where it was being used to show politicians and the rich swimming in money taxes don't bother them (kinda true). Guess I missed when it was shared around before. But to look even remotely credible Roodal shouldn't even be in the top 1000 richest trinis.

[sMASH]

So, when someone wants to live in a comfortable house and save up their salary to build or buy their house, they would have paid VAT when making the relevant payments, right?
The neighbour does fete, brands out, is chineese and bbq every week. And they living in a shack, with family pack up like cockroach.

According to the Patrick manning form of the property tax, the nicer your home is, the more you have to pay, becsuee the rentable value is high.

Why must the former person pay more in taxes than the latter becsuee they would prefer to live comfortably, even when already paid taxes when purchasing material for their house?

[sMASH]

Guess what, u would be taxed three times for living comfortably; the annual property tax, VAT for thr purchase of materials, labor, or the home outright, and before u withdraw the monies after deducting the income tax.

[Chimera]

Lol ppl like richard branson and donald trump are under 5 billion usd networth.....

[York]

1444245155627.jpg

businessmen paying little or no taxes while the blunt is on the shoulders of everyday citizens

is this not a definition of Capitalism? Taxpayers NOW have to pay for the misdeed of bailing out CLICO with their own (taxpayers) money. Who owns or benefits from Clico assets that were "saved" like MHTL plants - Taxpayers or government?

Has Taxation has replaced Slavery?

[Daran]

So doubles up to $5 now.

Guess I was right about runaway PNM instigated inflation.

[bluesclues]

So doubles up to $5 now.

Guess I was right about runaway PNM instigated inflation.

u serious? what reason they have to raise price though? doubles is the measurement stick. i always say that. when doubles price raise there is no denying inflation has occured.

[Daran]

http://www.guardian.co.tt/news/2015-10-08/doubles-1

Two days after the country listened to yet another deficit budget and woes painted of a gloomy economy, the price of doubles has risen.

Two barras and channa, sold for $4, is now $5. A tripple-three barras and channa has also been increased by $1.

Doubles vendor for the past 35 years Mahase Kanhai said he felt he had no choice but to increase the price.

His business is on Broadway, Port-of-Spain.

Saying he increased the price one day after Finance Minister Colm Imbert presented the 2015/2016 fiscal package in Parliament, Kanhai said he believed the increase in super gas would eventually have an overall trickle down effect on all goods and services.

“It was $4 but we had no choice but to increase the price. We added the cost of everything and with the passing of the budget... gas gone up so everything will also go up soon,” Kanhai added.

Despite the increase, the 48-year-old man, who operates the business with his son, Narendra, 26, said the influx of customers had been steady.

“Customers are still coming. They are not complaining because when it comes to food it is the taste and quality that matter... however you want to spend your money... but the $4 was not cutting it anymore,” Kanhai added.

Asked whether he believed the doubles business was becoming more and more difficult to sustain Kanhai said it all had to do with market prices, adding: “As the cost goes up we will go up too. In business it is about profit so I will adjust to suit.”

He said other doubles vendors in Central and along the East/West Corridor had also increased their prices.

Shawn Sadd Nagim, who operates the Nagim and Sons doubles on Chacon Street, Port-of-Spain, said he too was expected to increase his price but he would give his customers ample warning.

He said: “We are monitoring our goods prices according to what we have right now so when we calculate it then it will be adjusted to suit.

“However, this will not be in the near future but it will be adjusted eventually.

“People will take advantage of the price hike. The groceries would normally raise their prices and according to what we get we will have to pass it on to the consumer but at least we would give them notice, compared to other people.”

Saying his price increase was expected to take effect by the end of the year Sadd Nagim added his new cost for a doubles was expected to be between $4.50 and $5.

Asked whether he believed the decrease in Value Added Tax (VAT) from 15 per cent to 12.5 per cent would assist small businesses Sadd Nagim said:

“The drop in VAT would balance off but it is according to the supermarkets because they would take advantage and give consumers the same prices as before so we would have no choice but to increase.

“Once the Supermarket Association can clarify the prices we will work together with them,” Sadd Nagim, who has been selling on the same spot for the past ten years said.

In 2008, the price of the popular stable rose from $3 to $4.

REGULARISE SMALL BUSINESSES

Several Facebook users who expressed their displeasure by the doubles hike said the time was long overdue to regularise businesses that do not pay taxes.

“Make them have to register their businesses to operate. Without the necessary authorisation you cannot sell nothing. Make them provide financial records and set up business accounts, then let them pay taxes on that,” the user said, adding that the hike was “advantage” to poor people.

Another suggested that people buy fruits instead which were far healthier than street food.

A few others called on citizens to boycott doubles, saying the purchasing power ultimately lay with them.
“You have a choice do not buy it. These people are haters I am sure he had those ingredients before the Budget because they buy in bulk. Tough luck... make your sandwich from home,” one person added..

[pete]

#boycottdoubles

[RASC]

Isn't the purpose of property tax to encourage ZONING and prevent the very situation of your house's value being dragged down by that SHACK right next door?

That is how I understand it to be... Why should shack man be paying less in a neighbourhood full of pristine lawns, 3 car garages and 3/4bedroom mcmansions?

The higher the neighbourhood tax, the less riff raff , the better the amenities...

[RASC]

$4 for a doubles was stretching it... $5?
Not worth it in the least. Let them keep it!

Raising the price IN ANTICIPATION??? Foolishness...anyway govt coming to tax their backsides too-it's about time!!
They're making money hand over fist without paying a cent-while everyone else has to fork out to the tax man.

[K74T]

KFC goes up by dollars yet people still buy, doubles go up by a dollar and everyone loses their minds.