Trinidad & Tobago Budget Presentation 2020: Highlights October 7th 2019

[bluefete]

Serious thing now: Estimates of Revenue and Expenditure

Oil prices were not good.

Natural gas prices averaged US$3.02 end July 2019.

2020 Revenue ($47.74 billion) on oil price - US$60.00 and Gas Price US$3.00 per million btu.

Expenditure - $53.06 billion.

[Kronik]

No taxes and duties on LED light bulbs for 5 years

Also 100% back on solar water heaters up to $10k

[Slartibartfast]

I always wondered, what do countries without deposits of oil base their budget on?

[bluefete]

Fiscal measures:

Life Insurance companies - taxation reform: Statutory fund is eliminated as a basis for taxation to be replaced by new methodology but will not impact Insurance companies a lot.

Life Certificates for pensioners: will be eliminated for T&T pensioners who have computerized birth certificates (see ads in papers).

No more arrival forms in airports effective 2020.

No taxes and duties on energy bulbs (led bulbs) for 5 years in the first instance.

Solar water heater tax credit from 25% of cost to 100% of cost to a maximum of $10,000.00

[bluefete]

Fiscal Measures: (continued)

Energy investment tax credit (against SPT) increased from 20% - 25% to stimulate exploration.

Increase in stipends by 10% for OJT training programmes - effective December 1, 2019

Minimum wage to increase from $15.00 - $17.50 per hour

[bluefete]

Minimum wage increase December 1, 2019.

Personal allowance $3,000 - $5,000 for you frequent travellers (not taxed by customs) - effective December 1, 2019

[bluefete]

Tax allowance increase from $3 million to $6 million for creative industries - art, culture, sports, av production, local fashion - effective 1/1/2020.

Public service pensions will be reviewed and completed in fiscal 2020.

Co-op Soc Act - beneficiary will get $50k from $5k effective - Jan 2020. New body to be created to govern co-op societies.

CEPEP - Increase wages to be increased by 15% and fees to contractors by 15% as well.

URP - Wages to be increased by 15% effective 1/12/2019.

[bluefete]

Daily paid workers will be eligible for public service pension of $3,500.00 per month via a contributory plan effective sometime in 2020.

Styrofoam and plastics - ban on styrofoam importation for food. No more plastic water bottles in government offices effective 1/1/2020. Water coolers with filters in yuh pweffen.

[bluefete]

Agriculture: All taxes and duties removed on all inputs for registered farmers. No taxes for registered farmers.

VAT - $4.5 billion in VAT arrears to be paid by gov't. $3 billion in gov't bonds to be offered to those who are due VAT refunds. Bonds for 5 years and I missed the interest rate.

[Dizzy28]

Minimum wage increase December 1, 2019.

Personal allowance $3,000 - $5,000 for you frequent travellers (not taxed by customs) - effective December 1, 2019

You sure he said Dec 1st?? That would be weird especially with the new calendar year 1 month away.

[sMASH]

what is that with the agri and tax ? i missed that part.

also, can someone explain how the bond ting with the businesses and vat, will work. i just dont have the knowledge to understand how it works.

[bluefete]

Minimum wage increase December 1, 2019.

Personal allowance $3,000 - $5,000 for you frequent travellers (not taxed by customs) - effective December 1, 2019

You sure he said Dec 1st?? That would be weird especially with the new calendar year 1 month away.

Did you hear differently?

[Dizzy28]

Minimum wage increase December 1, 2019.

Personal allowance $3,000 - $5,000 for you frequent travellers (not taxed by customs) - effective December 1, 2019

You sure he said Dec 1st?? That would be weird especially with the new calendar year 1 month away.

Did you hear differently?

I'm not listening or watching thus depending on the accuracy of the info in here.

Its just that the budget measures usually take place with the passage of the Finance Bill of that respective year and its measures are usually Calendar year based so December seems weird based on historical precedence.

[sMASH]

Agriculture: All taxes and duties removed on all inputs for registered farmers. No taxes for registered farmers.

VAT - $4.5 billion in VAT arrears to be paid by gov't. $3 billion in gov't bonds to be offered to those who are due VAT refunds. Bonds for 5 years and I missed the interest rate.

oh, so they not giving u ur money now, they giving u ur money 5 years down the road with a lil sumting to mitigate inflation...
they just deferring repaying their debts.

and the agri ting; so u would have to purchase, then file ur receipt to get the VAT rebated? whats teh procedure?

[bluefete]

what is that with the agri and tax ? i missed that part. registered farmers will no longer have to pay taxes and duties on inputs to agriculture.

also, can someone explain how the bond ting with the businesses and vat, will work. i just dont have the knowledge to understand how it works.

If the gov't owes you VAT refunds, instead of paying cash they are offering you gov't bonds for 5 years (I missed the interest rate), You can cash in the bonds before time but you will not get the full face value if you do.

[bluefete]

Minimum wage increase December 1, 2019.

Personal allowance $3,000 - $5,000 for you frequent travellers (not taxed by customs) - effective December 1, 2019

You sure he said Dec 1st?? That would be weird especially with the new calendar year 1 month away.

Did you hear differently?

I'm not listening or watching thus depending on the accuracy of the info in here.

Its just that the budget measures usually take place with the passage of the Finance Bill of that respective year and its measures are usually Calendar year based so December seems weird based on historical precedence.

He said December 1, 2019 for several things including the raising of the minimum wage. I did say this was a mamaguy budget for elections.

[dredman1]

Minimum wage increase December 1, 2019.

Personal allowance $3,000 - $5,000 for you frequent travellers (not taxed by customs) - effective December 1, 2019

You sure he said Dec 1st?? That would be weird especially with the new calendar year 1 month away.

Did you hear differently?

Think I heard Jan 1 2020 for the increase in personal allowance

[sMASH]

what is that with the agri and tax ? i missed that part. registered farmers will no longer have to pay taxes and duties on inputs to agriculture.

also, can someone explain how the bond ting with the businesses and vat, will work. i just dont have the knowledge to understand how it works.

If the gov't owes you VAT refunds, instead of paying cash they are offering you gov't bonds for 5 years (I missed the interest rate), You can cash in the bonds before time but you will not get the full face value if you do.

dais reall bad man scenes. he can be mistaken for running a gang. that is like extortion.

[nemisis]

Effective when? Last time I heard there were no taxes or duties was on CCTV equipment and we ALL KNOW that memo never reached customs.

No taxes and duties on LED light bulbs for 5 years

Also 100% back on solar water heaters up to $10k

[Kronik]

what is that with the agri and tax ? i missed that part. registered farmers will no longer have to pay taxes and duties on inputs to agriculture.

also, can someone explain how the bond ting with the businesses and vat, will work. i just dont have the knowledge to understand how it works.

If the gov't owes you VAT refunds, instead of paying cash they are offering you gov't bonds for 5 years (I missed the interest rate), You can cash in the bonds before time but you will not get the full face value if you do.

Interest rate is 1.5% per annum

[bluefete]

what is that with the agri and tax ? i missed that part. registered farmers will no longer have to pay taxes and duties on inputs to agriculture.

also, can someone explain how the bond ting with the businesses and vat, will work. i just dont have the knowledge to understand how it works.

If the gov't owes you VAT refunds, instead of paying cash they are offering you gov't bonds for 5 years (I missed the interest rate), You can cash in the bonds before time but you will not get the full face value if you do.

dais reall bad man scenes. he can be mistaken for running a gang. that is like extortion.

Usually when the government has debts to pay and no cash, they issue bonds over a period of time. They did this for teachers many years ago when they had to repay the money Robbie took from public servants.

[pugboy]

A bond is typically a promise to pay by a certain time and interest along the way eg annually

If I owe you $100 and offer two year bond at 10%
It means I will pay you the $100 in two years time and at end of each year(twice)
I will pay you $10

So you getting $10 each year until end of second year when you get the full $100

[bluefete]

what is that with the agri and tax ? i missed that part. registered farmers will no longer have to pay taxes and duties on inputs to agriculture.

also, can someone explain how the bond ting with the businesses and vat, will work. i just dont have the knowledge to understand how it works.

If the gov't owes you VAT refunds, instead of paying cash they are offering you gov't bonds for 5 years (I missed the interest rate), You can cash in the bonds before time but you will not get the full face value if you do.

Interest rate is 1.5% per annum

Thanks Kronik.

[Kronik]

Effective when? Last time I heard there were no taxes or duties was on CCTV equipment and we ALL KNOW that memo never reached customs.

No taxes and duties on LED light bulbs for 5 years

Also 100% back on solar water heaters up to $10k

I not sure, may be 1st Jan 2020. Anyone can confirm?

[eliteauto]

what is that with the agri and tax ? i missed that part. registered farmers will no longer have to pay taxes and duties on inputs to agriculture.

also, can someone explain how the bond ting with the businesses and vat, will work. i just dont have the knowledge to understand how it works.

If the gov't owes you VAT refunds, instead of paying cash they are offering you gov't bonds for 5 years (I missed the interest rate), You can cash in the bonds before time but you will not get the full face value if you do.

dais reall bad man scenes. he can be mistaken for running a gang. that is like extortion.

How so? What he has done is transfer the debt to the private sector, the bonds earn 1.5% per annum and can be used as collateral for borrowing or they are transferable so they can be sold at whatever rate is negotiated between the bond holder and the buyer to access liquid cash. Considering the alternative might have been a longer wait for refunds this may be a good option

[bluefete]

Effective when? Last time I heard there were no taxes or duties was on CCTV equipment and we ALL KNOW that memo never reached customs.

No taxes and duties on LED light bulbs for 5 years

Also 100% back on solar water heaters up to $10k

I not sure, may be 1st Jan 2020. Anyone can confirm?

I am not sure if he gave a definite timeline - I may have zoned out at that point (Is Imbert after all). I am sure someone will have it.

[sMASH]

A bond is typically a promise to pay by a certain time and interest along the way eg annually

If I owe you $100 and offer two year bond at 10%
It means I will pay you the $100 in two years time and at end of each year(twice)
I will pay you $10

So you getting $10 each year until end of second year when you get the full $100

if was compounded, it would be more attractive. but with 1.5%... dat is dregs. for ur owwwwwnnn money

[pugboy]

Depends on if bond traders can wiggle within 1.5%
Otherwise they might offer less, eg 98% of bond value
So you could lose 2% of what you were owed.

[bluefete]

A bond is typically a promise to pay by a certain time and interest along the way eg annually

If I owe you $100 and offer two year bond at 10%
It means I will pay you the $100 in two years time and at end of each year(twice)
I will pay you $10

So you getting $10 each year until end of second year when you get the full $100

if was compounded, it would be more attractive. but with 1.5%... dat is dregs. for ur owwwwwnnn money

Is only when is Imbert own money yuh does see big interest rate.

[bluefete]

More debt for us to pay. Another deficit budget of $5 billion.