Trinidad and Tobago Introduces New Fines, Taxes and Governance Reforms

• Trinidad and Tobago’s Finance Bill 2025, a sweeping package of legislative reforms, was passed in Parliament on December 5, 2025, with the support of the Government’s majority. The bill was piloted by Finance Minister Davendranath Tancoo, who noted that the reforms mark a decisive step toward strengthening governance, modernising outdated laws, boosting public safety and ensuring greater fairness in the country’s tax system.
• Tancoo outlined 23 clauses that amend 21 pieces of legislation, noting that the measures will update penalties, close loopholes, modernise institutions, and introduce new revenue streams while fulfilling several key campaign promises.
• Of note, Clause 18 introduces several new tax measures, including the Commercial Asset Levy, a 0.25% levy on the total assets of licensed financial institutions and local insurers. These institutions must file annual returns, with penalties applied for late submission or payment. Tancoo said the levy ensures large financial entities “make a fair and proportionate contribution to national revenue”. The Board of Inland Revenue will be empowered to enforce compliance.
• A new surcharge on rental income, paired with mandatory property registration, will also take effect. Rates include: 2.5% on quarterly rental receipts of $20,000 or less and 3.5% on amounts above that threshold.  Additionally, unregistered rental activity and false declarations will attract penalties of $250,000 and three years’ imprisonment. This new measure is argued to be more equitable relative to the repealed property tax as it is based on “actual rental receipts as opposed to the People's National Movement’s (PNM) fictional rent”.
• The bill also institutes a 5% electricity surcharge per kilowatt-hour on commercial and industrial consumption, collected through the Trinidad and Tobago Electricity Commission (T&TEC) and remitted quarterly. Schools, healthcare facilities, and other public institutions are exempt. Additionally, a 5% tax will be applied to the CIF (Cost, Insurance and Freight) value of specified imported single-use plastics, such as bags, packaging, cutlery, and PET preforms (used to make plastic bottles). This aligns Trinidad and Tobago with global environmental standards.
• Furthermore, the bill introduces a series of governance and institutional reforms across key public systems. Clause 2 updates the Prime Minister’s Pension Act to align benefits with the new tiered, merit-based pension structure. Clause 3 modernises the Gambling and Betting Act by sharply increasing fines and custodial penalties for illegal lottery operations, which authorities link to serious crimes such as money laundering and drug trafficking. Clause 4 strengthens border security by updating the Immigration Act and supporting a shift to electronic declarations. Clause 5 formalises the Central Bank Governor’s authority to receive statistical information.

(Source: Caribbean National Weekly)