SENATE DEBATES FINANCE BILL

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Debate over Government's latest Finance Bill turned fiery in the Upper House today — as Government defended its fiscal measures as necessary for recovery, while the Opposition branded them punitive and misguided. The Independent Bench also raised red flags about governance and accountability within the tax system.

Transcript

00:00Minister in the Finance Ministry, Kennedy Swartzing, opened the debate on the finance bill in the Senate,

00:07insisting the measures must be viewed against economic conditions the government met on entering office.

00:12A deep structural imbalance that trapped our economy in low growth,

00:18a weakened revenue administration system, rising debt and an empty treasury,

00:24institutions in decay and thousands of citizens suffering from economic hardship, unemployment and diminished public services.

00:33Leading the batting for the opposition bench, Dr. Amory Brown immediately criticized the government's management of the economy.

00:40It is a credit to the PNM that this country has survived thus far eight months of UNC incompetence in managing the economy.

00:54Brown urged that instead of advancing measures outlined in the 2026 budget,

00:59the bill introduces new policies never previously signaled.

01:03Very interestingly, this bill also introduces some brand new measures that were not outlined or even foreshadowed in the budget for 2026.

01:16They were not referenced in the budget statement.

01:18He accused the government of hypocrisy and of targeting ordinary citizens.

01:23Many of these new measures introduced in this finance bill are designed to punish the ordinary people of Trinidad and Tobago, Mr. President,

01:34in the form of what can only be described as a tax attack on the people of this country.

01:43As an example, he said the proposed landlord tax is simply a rebranded property tax that would disproportionately affect low-income earners.

01:52The owner of a mansion in Valtaine or Westmoorings or any other prominent neighborhood,

02:03he pays not a cent in property tax, but granny and grandpa who are renting out a little house or room on their property

02:14now has to pay this relabeled property tax as a surcharge.

02:19Mr. President, nothing could be more unfair than that.

02:24Independent Senator Francis Lewis acknowledged government's intent to strengthen the Board of Inland Revenue,

02:30but warned that deeper organizational issues remain untouched.

02:34The bill does not alter the structural complaints that limit the Board of Inland Revenue's effectiveness.

02:42The organization remains embedded, and please, when I say the organization remains embedded,

02:48I would need to separate the organization from people in the organization whom I'm sure I'm trying very hard,

02:55embedded in the traditional public service over which they have very little or no autonomy,

03:00particularly in the areas of recruitment, compensation and performance management.

03:04He cautioned that without proper enforcement, new taxes could backfire.

03:09The BR runs into a difficulty of not being able to enforce it,

03:15and so the result could be lower compliance, superficial revenue gains,

03:22and if it is not applied fairly, you're going to face, we are going to all face public resentment.

03:29Lewis also questioned the decision to add the finance ministry's permanent secretary

03:33to the Board, citing the sensitivity of the information the Board handles.

03:38I am somewhat uncomfortable with Ministry of Finance people being on the boards.

03:44There is an old phrase, you cannot hunt with the hares, sorry, you cannot run with the hares and hunt with the hounds.

03:52You're putting our very good public servants in a somewhat individuous position of being Ministry of Finance,

04:02that has its role and responsibility, and the Board of Inland Revenue, that has a different role and responsibility,

04:06and saying, okay, manage.

04:08That feels, it doesn't feel right.

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