See 2025/2026 Budget Measures: Decrease in Super Gas, Increase in Alcohol

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Caption: Minister of Finance Davendranath Tancoo. Photo: T&T Parliament

By Prior Beharry

MINISTER of Finance Davendranath Tancoo presented a fiscal package in the 2025/2026 Budget of $59.2 billion in expenditure. The estimated total revenue is $55.4 leaving a budget deficit of $3.9 billion.

See the main measures below:

The price of Super gasoline at the pumps will be reduced by $1 immediately. It decreases from $6.95 to $5.95 per litre.

The introduction of an Asset Levy of 0.25 per cent, which is to be charged against the assets of commercial banks and insurance companies operating in Trinidad and Tobago. This measure will become effective January 1 2026, and is expected to contribute $575 million annually to revenues.
All landlords to register with the Board of Inland Revenue and pay a one-time registration fee of $2,500.00. The surcharge will be applied as follows:
per cent of the gross annual rental income of $20,000.00 or less; and5 per cent of the gross annual rental income exceeding $20,000.00. This measure takes effect on January 1 2026, and is expected to yield a minimum of $70 million from the one-time registration fee.
An electricity surcharge will take the form of a fixed, bill-level charge of $0.05 per kWh for Commercial Customers and Industrial Customers. Not residential customers. This measure takes effect on January 1 2026.

Increase in spirits and alcohol:

	Existing	Proposed
Rum and Spirits) (By per cent of Alcohol	$79.25	$158.50
Beer (by gravity of beer)	$5.14	$10.28
Cigarettes (per pack of 20)	$5.26	$10.52

Tax on electric vehicles whose CIF value exceeds $400,000:

A rate of duty of 10 per cent; VAT of 5 per cent; and
A tiered rate of Motor Vehicle Tax applicable to the Electric Motor Size will be applied on vehicles whose CIF value exceeds $400,000. At current demand, this initiative will contribute an additional $40 million to revenues. This measure takes effect on January 1 2026.

A 5 per cent tax on the CIF value of these single-use plastic products at the point of importation. This measure will take effect from January 1 2026.

A State-Sponsored Real Estate Investment Trust (REIT), a landmark initiative to democratise state-owned assets, strengthen and diversify our capital market and broaden public participation in national wealth creation. A High-Level Technical Committee will be appointed to guide this process for greater transparency and accountability.

In Fiscal 2026, the National Investment Fund Holding Company Limited (NIF) will launch a $1 billion NIF Bond.
This Bond will be backed by 21 per cent of the shareholding of First Citizens Group Financial Holdings Limited (FCGFH) valued at approximately $2.0 billion, while the Government retains Indirect and Beneficial Ownership of the majority of FCGFH at 11 per cent.
This Bond will be issued in the second quarter of Fiscal 2026.

To ensure stricter adherence to the law, more rigorous consequences for non-compliance:

	Existing	Proposed
Environmental Tyre Tax	$3,000.00	$5,000.00
Application for Registration of a Pesticide	$2,000.00	$4,000.00
Brewers	$4,000.00	$10,000.00
Driving while disqualified from holding or obtaining a driving permit	No Fee	$5,000.00
Careless Driving	No Fee	$15,000.00
Driving or being in charge of a vehicle while blood alcohol levels exceed prescribed limit	No Fee	$15,000.00

Removal of Motor-Vehicle Tax Concessions for Returning Nationals

Amending the subsidy on LPG cylinders of 100 pounds and above by $0.50 per pound. The price of cylinders below 100 pounds, including the standard 20-pound cylinders, will continue to be subsidised at the same rate and will not change. Effective January 1, 2026

Starting in January 2028, the age for a full NIS pension will increase by one year every two years until it reaches age 65 in 2036. This means that to access the full minimum pension of $3,000:
From January 1, 2028, to December 31, 2029, a retiree must be 61 years of age;
From January 1, 2030, to December 31, 2031, a retiree must be 62 years of age;
From January 1, 2032, to December 31, 2033, a retiree must be 63 years of age;
From January 1, 2034, to December 31, 2035, a retiree must be 64 years of age; and
From January 1, 2036 onward, a retiree must be 65 years of age.
These adjustments mean that the retirement age for a full NIS pension will move from 60 to 65 over the next decade.

A National Innovation and Incubator Programme to provide 100 young graduates and aspiring entrepreneurs with the mentorship, financing and structured support required to transform ideas into viable businesses, and expand the base of small and micro-enterprises towards economic diversification. In fiscal 2026, the Government, through an allocation of $15.75 million, will partner with the Unit Trust Corporation and UWI Ventures Limited.

Dealing with period poverty:

The Ministry of Finance and the Ministry of the People, Social Development and Family Services will collaborate to establish a Women’s Health Fund:

The Government will provide an initial seed capital of $5 million. We will also partner with other stakeholders to ensure the sustainability of this initiative. This fund will be used to:

Launch a pilot programme to provide distribution of free menstrual kits in educational institutions; and

Provide education and sensitisation on menstrual health for various groups—including men and boys—to foster inclusivity and dismantle stigma.

A tax incentive will be provided to encourage individuals and corporations to contribute to this Fund.

Removal of Value Added Tax from a multiplicity of basic food items including: table salt, mauby, coconut water, as well as locally produced pumpkin, watermelon, cucumber, lettuce and tomatoes.

Removal of VAT from all machinery and equipment intended explicitly for agricultural use.

An increase in the permissible age of importation of private cars (SUVs, Sedans and Station Wagons) which are powered by gasoline, diesel or CNG from 3 years and under, to 6 years and under, from the date of manufacture; and
An increase in the permissible age of importation of light commercial vehicles (pickups and panel vans) from 7 years and under, to 10 years and under, from the date of manufacture. This measure will take effect from January 1 2026.