TANCOO EXPECTS BUSINESSES MAY 'PASS THE BURDEN'

CCNTV6

Finance Minister Davendranath Tancoo says citizens hold the power to push back against any attempt by businesses to “pass the burden” following the announcement of certain proposed tax measures in Monday’s budget.  Speaking to reporters following the Trinidad and Tobago Chamber of industry and Commerce Annual Post Budget Meeting in C3 San Fernando on Tuesday morning.  Minister Tancoo encouraged businesses to be responsible, but says he expects that some will want to increases their prices.  Reporter Cindy Raghubar-Teekersingh tells us more.

Transcript

00:00Monday's budget centred on giving regular citizens certain financial breaks,

00:06a reduction in super gas price, tax relief on private pensions,

00:11the public sector's 10% wage increase, among other items.

00:15But corporate TNT was told electricity rates will increase,

00:19a landlord business surcharge will be implemented,

00:22and increased duties on rum, spirits, beer and tobacco products take immediate effect,

00:27moves that the minister expects may cause a ripple effect.

00:32There are expectations at all sides that businesses will pass on costs to regular consumers.

00:40I expect that.

00:41What I also expect is also a little bit more activity from the commercial sector,

00:45from the businesses and from members of the population themselves

00:49to push back against passing the building on.

00:52Minister Tangu says with each of these fiscal measures,

00:56the taxes are minor.

00:58The tax on beer works out to a minuscule,

01:01I believe it's below 10 cents per bottle of beer.

01:06An increase of below 10 cents per bottle of beer.

01:09A bottle of beer says, I don't know, I don't know,

01:11$12.

01:15So I am asking to provide 10 cents more per bottle of beer.

01:22If that is the figure, and I believe it may be lower,

01:24they are not going to be drinking a whole case of beer at that time.

01:28So even if,

01:29but even if you are looking at a case of beer,

01:34the tax still is minuscule.

01:37Minister Tangu also rebutted claims by the opposition

01:40that the landlord tax is just a form of property tax.

01:44The property tax that they have tried to put in place

01:47was based on an assumed rental value,

01:51on commercial properties.

01:52So your home, whether it was generating an income or not,

01:55would have had to pay a tax as if it was generating.

01:58This is completely different.

02:00This is on commercial equity.

02:02This is on people who are renting.

02:04Those costs may or may not be passed on to others.

02:08It is then up to those persons who are renting

02:10to decide what they want to do.

02:12But it is unethical and inappropriate and illegal

02:15for persons to be engaging in commercial activities

02:19and not pay their payers.

02:21So the legislation was designed to balance,

02:24to make sure we bring people to book.

02:26He says ultimately, consumers hold the power.

02:30I assume that businesses will accept their own responsibility

02:35to be part of the process of billing generality.

02:38And if all that they are focused on

02:40is their own private profit margins,

02:42they will see their profit margins fall

02:45as other people move elsewhere.

02:48Cindy Ragubatika Singh, TV6 News.

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