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TAXATION MEASURES & HIGHLIGHTS
1.
Unchanged Tax Rates
The following taxation measures remain unchanged for
calendar year 2004:
Individual Income tax - 25% up to $50,000 chargeable income
- 30%
greater than $50,000 chargeable income
Corporation Tax - 30%
Business
Levy - 0.2% of gross sales
Green Fund Levy - 0.1%
of gross sales
2.
Personal Allowance
Individuals
under the age of 60 years - $25,000
Individuals over the age of 60 years - increase from $30,000 to $40,000
as
of January 1, 2004.
3.
NIS Retirement Pension
Increased to a minimum of $1000 per month per person
with effect from
October 1, 2003.
4. Removal of Tax on Savings
Elimination of the 5% tax on Interest Income earned by resident individuals who invest their money
in Trinidad & Tobago.
5.
Allowance for Pensioners
An
increased allowance is being looked at for 2004.
6. Allowance for Sports, Art & Culture
An allowance of 150% of the actual expenses incurred up to a maximum of $1,000,000
- an increase from a maximum of $450,000.
7. Increases in fees payable on Gambling Tables and Other Devices
Slot machines
- increase from $2,000 to $10,000 per annum
Regular Poker Tables
- increase from $8,000 to $20,000 per annum
Other Specified Tables
(eg. Baccarat & Roulette)
- increase by 25% per annum
Unspecified Tables & Devices - $10,000 per annum
These increases
will take place with immediate effect.
8.
Increase in Gasoline prices
New unleaded 92 Ron grade - retail pump price of $2.70 per litre
Leaded 95 Ron grade
- retail pump price increase from
$2.45 to $2.70 per litre
Unleaded 95 Ron grade - retail pump price
increase from
$2.85 to $3.00 per litre
Auto Diesel & Kerosene - retail pump
unified price of $1.50
per
litre
These adjustments will take place with immediate effect.
9. Increase in the Disability Grant
From December 1, 2003 the disability grant will
be increased from $600
to $650 per month and the minimum qualifying age will be reduced from
40 to 18 years.
Proposed Tax Reforms
-The Government,
in a bid to collect its fair share of revenues, will undertake in 2004, a comprehensive review of the Tax Administration to
ensure a much higher level of tax compliance. In this regard a Revenue Authority will be established that will bring together
the Inland Revenue Division and the Customs and Excise Division into a single entity.
-There is concern that
the contribution from VAT has been declining since 1998 due to an increase in the number of zero-rated and exempt items and
a system that has encouraged evasion and fraud. To address these concerns, a committee has been set up to undertake a comprehensive
review of the VAT regime.
-To facilitate an expansion of the Agro-processing sector it is proposed that an initial
allowance of 100% be applied to capital expenditure in plant and equipment for approved activities. There will be a reform
of the support arrangements for the agricultural sector as well as the introduction of tax credits and investment allowances
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