00:00Trinidad Tobago Manufacturers Association President Emilio Amkisun began his speech at the Association's Post Budget Forum at the Hyatt Regency
00:08in Port of Spain by announcing the Finance Minister was unable to attend the event.
00:13Following the reading of the national budget by the Honourable Minister of Finance, Devendra Natanku, for fiscal year 2026-2027,
00:24navigating the theme, a people-centred approach, investing in communities, transforming the economy, and securing a sustainable future.
00:33Again, on behalf of myself and the rest of the board, we apologize for his absence in not being here
00:40today, as other critical national items arose.
00:44Mr Amkisun then gave the TTMA's overall assessment of the budget for fiscal 2027.
00:50The budget was set in a tone that is the right one of optimism and realism, that would seek the
00:57overarching national interest by generating more revenue for all sectors of Trinidad and Tobago's economy to benefit.
01:05And among the benefits the TTMA would like to see for the local manufacturing sector, the payment of value-added
01:12tax or VAT refunds.
01:13A VAT refund is not a favor to a manufacturer. It is money that belongs to the business.
01:21When refunds are delayed, the money leaves the company's cash flow.
01:26When refunds are paid on time, the money can be reinvested in new machinery, plant upgrades, technology, inventory, employee training,
01:36and expansion.
01:36And when a manufacturer reinvests, that investment will unavoidably lead to increased production, and increased production creates export capacity.
01:47Exports generate foreign exchange.
01:50Foreign exchange grows and strengthens the economy.
01:54Mr Amkisun said that is why the TTMA has, quote,
01:58consistently advocated for timely VAT refunds, including a system that prevents arrears from accumulating and expedites refunds for exporters, end
02:08quote.
02:09We note here, at the TTMA, that the new modernized regime for VAT was mentioned in the fiscal 2026-2027
02:18budget,
02:19rather than a sales tax mentioned in the fiscal 2025-2026 budget.
02:25And we welcome the modernized VAT system to be implemented.
02:29However, we cannot wait any longer, as VAT has been a critical component to our members.
02:36But the TTMA has indicated its wait for one key measure is over,
02:40the 25% reduction in excise tax on locally produced and imported alcoholic beverages,
02:47except products that benefit from preferential customs treatment under Trinidad and Tobago's existing trade agreements.
02:53The TTMA will be based on the product's value, ad valerum rate, instead of the volume of alcohol.
03:00This is a win for us at the TTMA, as we have lobbied over the last year for this reduction
03:06to apply.
03:07However, we have advocated for the same reduction to be applied to tobacco,
03:12and are hopeful that the government can take a deeper dive into this measure being addressed.
03:18As this sector is currently facing high levels of illicit trade,
03:22with approximately 12.8% as provided by stockholders' data.
03:27The TTMA's president noted the government's proposed measures to tackle illicit trade,
03:33including its commitment to accelerate resources to the Anti-Illicit Trade Task Force
03:39and the implementation of the Customs Recordation and Information System.
03:45Jewel Brown, TV6 News.
03:50Jewel Brown, TV6 News.
