Trinidad & Tobago
More taxes for all
Port-of-Spain – If Trinidad and Tobago is to successfully overcome the difficult financial situation now being endured, then the burden of adjustment must be shared by all, Finance Minister Colm Imbert said during presentation of Budget 2018 on Monday.
“We must all adjust, cut our cloth to suit our coat as the proverb says. We cannot continue to live on borrowed money or continue to run large budget deficits as has been the practice for the last eight years,” Imbert said as in unveiling the (TT) $50.5B 2018 Budget in the House of Representatives.
Imbert was confident once the burden is shared, Trinidad and Tobago would be able to “meet any challenge the outside world throws at us”, with the population becoming “more productive and efficient”.
According to Imbert’s thinking, one of the roads to recovery was increasing the prices of super gasoline from (TT) $3.58 to $3.97 per litre. Diesel took a similar hit with an increase from $2.30 to $3.41 per litre. His reasoning was to dip equally into the pockets of motorists, with Imbert reiterating the fuel subsidy now in place benefited the wealthy man driving a diesel BMW X5 as much as it did the working man behind the wheel of a Nissan pick-up.
The ripple effect of an increase in the cost of fuel will no doubt hit the travelling public, with immediate repercussions felt by maxi-taxi and taxi drivers. In addition to costlier fuel, Imbert also added a $20 environmental tax on tires, along with 30 percent custom duty on imported tires.
In imposing the 30 percent custom duty on imported tires, Imbert said this would avoid evasion by false classification of new tires as “used”, which are duty-free. The “environmental tax” of $20 on each imported tire would “cover the cost of proper disposal of used tires”, he said. Imbert also increased the vehicle inspection fee from $165 to $300, and imposed a 20 percent increase in motor vehicle tax on high-end vehicles with engine sizes exceeding 1599cc.
Higher private healthcare costs are also to increase with additional taxes on private nursing homes. Private hospitals now pay fee of $150 a year for their licences to operate. Addressing this low fee, Imbert announced annual increases ranging from $25,000 to $50,000 and $100,000 based on the number of beds.
Imbert said this new measure would not apply to hospitals for the convalescent or chronically ill, homes for the elderly, or hospitals for any designated disease or specified disease, disorder or illness. Penalties for offences under the Private Hospitals Act was increased from $10,000 to $100,000 and for any continuing offence from $200 per day to $1,500 per day.
The banking sector also attracted Imbert’s attention, with an increase of five percent on its 30 percent corporate tax.
Winners of Play Whe, Cashpot, Pick Two, Lotto and other National Lotteries Control Board winnings were also called upon to share the burden of recovery, with a ten percent tax imposed on all winnings starting December 1.
The highest tax increases were imposed on the private gambling and gaming industry. The existing rate of duty on all mechanical games was increased from 20 to 40 percent, with an annual flat tax of $120,000 introduced for all electronic roulette devices in bars. Taxes were introduced ranging from $60,000 to $150,000 on gaming tables for baccarat, blackjack, poker and dice, with an annual $24,000 tax on slot machines.
The budget is titled “Changing the Paradigm: Putting the Economy on a Sustainable Path”, with total revenue budgeted at $45.74 billion and total expenditure at $50.5 billion. The fiscal deficit for 2018 was estimated at $4.76 billion. The budgeted revenue was predicated on an oil price of (US) $52 and a gas price of $2.75 per mmbtu.
Opposition Leader, Kamla Persad-Bissessar, was unhappy with the presentation, saying it was a “bankrupt budget” that will cause across-the-board increases on everything, and consequently suffering for the ordinary people.
Said Persad-Bissessar: “I'm sorry if I sound a bit angry but I'm really very disappointed because I can see great suffering for the ordinary people of this country... It is bankrupt of any ideas, it is bankrupt of any plan to take the country out of the recession that we are in, and it is one that is literally bankrupting the country so in every regard it’s a bankrupt budget.”
Persad-Bisessar said the fuel hike signals more suffering to come as this will impact on the price of everything, creating a "multiplier effect" because everyone depends on transport.
She said it was very clear that this "burden" the economy faces will be shared inequitably and unevenly given the measures put forward, which will only bring about more suffering, especially to the most vulnerable in the society.
Despite the massive revenue shortfall, which has placed the nation in an economically precarious position, Rowley said the country will not return to the days of foreign exchange controls, but will also not maintain exchange rate at levels which will further encourage imports.
He said the government will not use the limited forex reserves to support the exchange rate.
“This would be paving our way into the arms of the IMF and that is something this government is not prepared to do.”
Rowley said the first priority for foreign exchange will be given to firms or industries which generate reasonable amounts of foreign exchange.
“If the demand for foreign exchange is not curtailed we will eventually be forced to live with the rate determined by the market. This is where holding strain and varying our taste come in,” he said.
Rowley said the government’s strategy for restoring growth is to get the private sector to invest in selected sectors or industries: export manufacturing; tourism; housing; maritime services; agriculture; financial services and creative industries. “Over the coming three years the government intends to pick a number of sectors to lead the revival and will work with the private sector to ramp up activity in these areas,” he noted.
He added the aim will be to generate foreign exchange and increase output.
“The fiscal regime will be configured to support the development of new businesses and getting existing businesses to adopt new modes and new lines of activity. The expectation is that the phenomenal investment we have made in education and human capital over the years will get opportunities to bear fruit for the country,” he said.
Rowley noted the government expects to achieve growth of six percent for each of these sectors over the three year period and will set up an implementation team to ensure that this growth target is met.
According to Rowley, the government is also looking toward “infrastructure investments”. Along with this, “the expected revival in the energy sector” for contributions to growth, although he said “the truth is the government is not depending on these activities since the aim is to energize the diversification of the economy”.
Following the hurricane, Rowley recommended to nationals who could do so to open doors to homeless Dominican family or friends, or to Caribbean brethren. The government was prepared to waive immigration requirements for six months.
The recommendation led to xenophobic and racially-tainted comments on social media. Among the postings were those claiming Dominicans would commit crimes, or use up State resources. Others felt charity should begin at home, with nationals already suffering and in need of State help.
However, there was also positive discussion, with the majority of nationals countering Trinidad and Tobago should have no problem helping its Caricom neighbour in a time of need.
Rowley’s response to the nay-sayers was, “Shut your mouth and let Trinidad and Tobago strive.” His response provoked even further criticism.
With the main narrative of his initial gesture to Dominica shunted into a narrower conversation, Rowley later said his invitation was misunderstood, that is was not a blanket invitation to all of Dominica.
Said Rowley: “I don't know why there should be any criticism by persons because nobody has forced anybody to open their doors. I said if there are persons in Trinidad and Tobago who have family members in Dominica, and such persons along with friends who may have the wherewithal to open their door to these people, such persons would be welcome. I don't know that in that situation an argument should arise as to where they will go. They are going to their family or they are going to their friends."
He added the conversation surrounding his invitation to Dominicans has become an embarrassment to the country.
“I was very careful with what I said, and it was just the nastiness that exudes from some people that caused what I said to become this embarrassing conversation in our country,” he said.
Rowley maintained it was not an adequate response Trinidad and Tobago should not reach out to help since it was experiencing challenges of its own.
“I don't know where we got this from that we don't have enough for ourselves so we can't help the destitute. I know that the people of Trinidad and Tobago are better than that. It doesn't help our country to be profiled in that way that you ask for help for people who are so damaged by a natural disaster and there is a strong voice in the country opposing it in such a despicable way. I think we are better than that," he said.
There was support for Rowley’s call both inside and outside the government. While endorsing Rowley’s call, Planning and Development Minister Camille Robinson-Regis insisted the nation must rise above the pettiness of race and politics. It was an opportunity for the country to become a brother’s keeper in Caricom, she said.
Retired High Court judge Herbert Volney was also critical of criticism citing a political agenda in Rowley’s offer for refuge. Volney was born in Dominica.
“The Prime Minister was magnanimous in his offer, one that had no cost to taxpayers. Rather than look to the good in it, you’ve peddled only hatred towards Dominicans. Padding the electoral list? That’s the thinking of idiocy,” he wrote on his Facebook page.
Volney said Dominicans do not usually come to Trinidad except to attend the University of the West Indies.
“They go to the USA, Canada and the United Kingdom. The only Dominicans who will likely come to Trinidad, will be persons like my brother who will stay at my home and return to their homeland once the comforts of life return,” he wrote.
Support also came from Imam Mashtaq Sulaimani, who called for an end to the politicising of the government’s response.
Speaking last week at the ASJA Mosque in San Fernando, Sulaimani said people are duty-bound to help, and especially those in the Muslim community, even if it meant having to facilitate a family in Dominica in their homes.
“People do not have food, drinking water and their houses have been destroyed,” he said. He called on Muslims to begin putting together their Zakaat to send to Dominicans, and they must be at the forefront in initiating such a drive.
“Muslims must not be holy only during the month of Ramadan,” Sulaimani said.
Persad-Bissessar said Rowley's comments in a TV6 interview that he "did not knowingly associate with crooks except in Parliament" insinuated that all members of Parliament, including the Speaker and the parliamentary staff, were "crooks"; were persons of "ill and questionable character" who were "involved in illegal and criminal activities".
She said the Prime Minister's comments were "damaging, disparaging" and "negatively reflected on members of the House, bringing them all into ridicule, odium and contumely".
Persad-Bissessar added: "The statements made by the Honourable Prime Minister and Member for Diego Martin West have had the effect of severely adversely affecting the credibility of members of this House in the performance of their duties as members of Parliament." Furthermore the statements were "intentional, reckless and contemptuous", she declared.
The Prime Minister at the time was responding to a question from the media about his relationship with A&V Drilling owner Nazim Baksh, who is the subject of a probe in a "fake oil" allegation, when he said: "If there is wrongdoing, identify the wrongdoing and hold people accountable. I don't know that we should be overdoing it and I am not afraid of identifying the people I associate with because I do not knowingly associate with crooks except in Parliament."
Noting that the statements were broadcast on national television and reported in the print media, the Opposition Leader requested that the matter be referred to the Privileges Committee.
Annisette-George said she would give her ruling at a "subsequent sitting"
The surveys were conducted in June, July and September and reveal Prime Minister Dr Keith Rowley had slipped lower, with Opposition Leader Kamla Persad-Bissessar’s rating marginally above the Prime Minister’s figures.
“New insight from ongoing opinion surveys conducted by the North American Caribbean Teachers Association in June and July and being conducted over the last couple of weeks (September) reveals the PNM government and the Prime Minister himself have been badly slipping in popularity ratings,” NACTA stated last week.
“However, the Opposition UNC led Peoples Partnership has not been making gains, and the Opposition Leader’s approval rating is just marginally above that of the PM,” the poll stated.
“The poll also reveals that the politics over the last several months has been static with voters disgusted at both major political parties. The PNM and UNC are unpopular even in their own traditional strongholds in terms of approval rating, the government has been tanking – 33 percent now continuing a downward trend in June and July of 37 percent and 35 percent respectively.”
“The approval rating of Prime Minister Dr Keith Rowley is appreciably a little higher but also slipping – 40 percent in September, 41 percent in July and 42 percent in June,” NACTA stated. It adding Persad Bissessar’s approval rating was “marginally better at 42 percent and has not seen much shift from June and July (43 percent)”.
NACTA noted that approval ratings for the government, Prime Minister and Opposition Leader seem to be shaped by “ethnicity” with Indians favourably disposed towards Persad-Bissessar and Africans for Dr Rowley.
However, in terms of popular support, NACTA observed that people were turned off from both political forces with voters “dissatisfied with both the governing party and the opposition partnership”.
Said NACTA: “They are very disappointed with the broken promises of the PNM and the Partnership is not viewed as a viable alternative. People are preoccupied with their own lives and politics is far removed from their mind.”
Additionally, “Support for the two political forces is almost even at 30 percent with people saying they want a third force. The general feeling among the population is if an election were to be held now with the same two political choices, there will be a very low turnout.”
The surveys were supervised by Dr Vishnu Bisram and used the “intercept contact method” of face to face interviews with 380 adults interviewed in June, 410 in July and 390 in September to represent the demographic composition of the population. Only Trinidad was surveyed.
The surveys stated that rising crime, widespread perception of corruption, arrogance among some ministers and government officials, and a stagnant economy among other factors were “taking a heavy toll on the approval ratings of the PM and the government”.
The findings of the three polls also reveal that crime was the number one concern of citizens with 96 percent saying crime was a “major concern” for them up from 95 percent in July and 93 percent in June.
The poll also found that 69 percent identifying “perceived corruption” as a “worrying matter” up from 63 percent in July and 54 percent in June. The poll also stated that another worrying trend was the increase in the percentage of respondents who say they are worried that the country was not moving in the right direction – 89 percent up from 85 percent in July and 83 percent in June.
Rambarran sued Henry over comments he (Henry) made against Rambarran on a radio talk show in 2014.
The UNC noted that Henry accused Rambarran of using public funds from the Central Bank to pay for repairs to his private home. It noted further that the court found that Henry "was reckless in making the statements which he did, statements which had no factual basis and which he did not even take the time to investigate or to speak to the claimant about prior to him making them on the radio".
Justice Devindra Rampersad granted judgment against Henry and ordered him to pay aggravated damages in the sum of (TT) $550,000 plus legal costs for Rambarran's legal team led by former attorney general Anand Ramlogan.
"We take serious issue with the fact that Dr Henry misled and deceived the court by failing to disclose that he had an official recording of the very radio talk show on which it was alleged he had uttered the defamatory words. This deliberate omission was crucial as Henry did not admit that he has spoken the words complained of," stated the UNC.
It noted that the court rightly criticised Henry over his attempt to suppress and conceal evidence relevant to the case.
The UNC quoted from the court judgment, adding suppression of evidence is a most serious matter.
"The finding by the High Court is one that renders Dr Henry unfit for the position of government senator. It is an indictment on his integrity and character as it implies that he was trying to mislead and deceive the court into ruling in his favour. This is a violation of the code of ethics and a betrayal of the public trust," it stated.
It added: "In the circumstances the Prime Minister must act now to save the government from further embarrassment, shame and disgrace. He has no choice but to revoke Dr Henry's appointment as a senator. To do otherwise will simply confirm that the government is aware that it lacks integrity and moral authority and hence Dr Henry's continued presence will cause no further damage."
