00:00As part of the upcoming finance bill that will be before this Parliament shortly, before the close of this session,
00:08my government is introducing a major reform to our tax system, one that will exempt from income tax the pension
00:16payments received from approved pension fund plans and approved deferred annuity plans.
00:25The announcement by Prime Minister Kamala Pesad-Besessa in the House of Representatives,
00:30which she said is in keeping with an announcement made by the Finance Minister in the 2026 budget presentation in
00:38October of last year.
00:40A pension is not a windfall. It is not a bonus. It is the result of years, sometimes decades, of
00:47sacrifice, discipline and commitment.
00:50And Prime Minister Pesad-Besessa told the lower house on Friday,
00:54The exemption will take effect, very important, Mr. Speaker, will take effect on income earned on or after January 1,
01:032026.
01:06At the same time, the measure applies to plans that already exist.
01:11Therefore, Mr. Speaker, individuals who have been contributing to an approved pension plan or deferred annuity plan for years,
01:18even decades prior, will benefit from this exemption going forward from January 1, 2026.
01:25And how many people stand to benefit?
01:28Based on past income tax return filings and TD1 declarations for income years previously,
01:33To date, 39,063 taxpayers made claims for annuity contributions.
01:40So, about 39,000, over 39,000 individuals will benefit from this provision.
01:48Further details were provided to the lower house.
01:51This measure will therefore benefit, let's make it very clear,
01:54workers in the private sector who have contributed to approved pension plans.
01:59Individuals who have invested and approved deferred annuity plans as part of the retirement strategy.
02:05Middle-income earners who rely on these plans as a key source of income after retirement.
02:11And future retirees who are currently building their savings and will now do so with greater confidence.
02:18The Prime Minister said her administration was also focused on the integrity of the tax system.
02:24If an approved pension plan or deferred annuity plan is surrendered before the appropriate time,
02:29that is to say before retirement opportunity,
02:32then those sums received will remain subject to tax.
02:36So, this is clearly for retirement.
02:38House Speaker Jack Dale Singh later allowed a question from Opposition MP, Colm Inbut.
02:44Can the Prime Minister state why, since in the UNC manifesto and on the political platform,
02:51the Prime Minister said this measure would be applicable to both public and private pensions,
02:57why have you left out public servants and other recipients of public pensions?
03:04In her response, Prime Minister Pasal Besasa made reference to Mr. Inbut's tenure as finance minister
03:10under the former PNM-led government.
03:12Mrs. Speaker, what I can say is that we have demonstrated we have the will to dwell on our promises.
03:20It is no secret that we inherited a broken system from that former member,
03:28former minister, or former former minister of finance,
03:31the member for former former Lago Martin North East.
03:35And we have sought to enrich, they sought to enrich friends and family and finances.
03:43What we are doing is trying to enrich our workers, our taxpayers,
03:48and those who want to be given to their plans.
03:52Although the date is yet to be announced,
03:55the House of Representatives is expected to begin its debate
03:59of the mid-year review of the 2026 budget soon.
04:03Jewel Brown, TV6 News.
04:05Jewel Brown, TV6 News.
04:08Jewel Brown, TV6 News.
04:09You
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