Trinidad and Tobago: Tax measures in 2026 budget

Direct and indirect tax measures covering the environment and technology, cost of living, and increasing revenue

The Ministry of Finance on October 13, 2025, presented the 2026 National Budget focused on “Building Economic Fairness through Accountable Fiscal Policies.” The budget includes a range of tax proposals aimed at fostering economic growth, promoting sustainability, and enhancing fiscal responsibility.

Levy on assets of financial institutions: Introduction of 0.25% asset levy on commercial banks and insurance companies, excluding institutions in special economic zones
Electricity surcharge: Introduction of TT$0.05 per kilowatt-hour (kWh) surcharge for commercial and industrial customers
Increase in fees, charges, and excise duties: Adjustments to customs duties on rum, spirits, beer, and tobacco, along with revisions to various license, permit, and processing fees
Customs duties on luxury electric cars: Adjustments to taxation regime for luxury electric vehicles with a cost, insurance, and freight (CIF) value exceeding TT$400,000, including customs duty, value added tax (VAT), and motor vehicle tax based on electric motor size
Taxation on single-use plastics: Introduction of 5% tax on the CIF value of single-use plastic products at the point of importation
Establishment of real estate investment trust (REIT): Creation of a state-sponsored REIT with shares listed on the Trinidad and Tobago Stock Exchange
Removal of VAT on agricultural inputs: Removal of VAT from machinery, equipment, and components explicitly used for agricultural purposes, including hydroponic and greenhouse farming; removal of customs duties from feed used for poultry, cattle, and pigs
Removal of tax on private pensions: Introduction of income tax exemption for private pensions effective January 1, 2026
Reducing the cost of construction materials: Amendments to the negative list under the Trade Ordinance to remove restrictions on the importation of certain construction materials, such as clays, crushed limestone, sand, and gravel

Read an October 2025 report (49 pages) prepared by the KPMG member firm in Trinidad and Tobago

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Trinidad and Tobago: Tax measures in 2026 budget

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