Finance Minister Karen Nunez-Tesheira announced yesterday the immediate imposition of higher taxes on cigarettes and alcohol, increased the penalties for reckless driving, and signalled that property owners will have to fork out higher taxes from January 1, 2010.
This as Tesheira presented her second budget in as many years. It lasted three hours and seven minutes in the Parliament Chamber, Red House, Port-of-Spain. During her presentation, Opposition MPs, including Subhas Panday, were heard saying the budget did not contain any new initiatives. Prime Minister Patrick Manning was seen putting his finger on his lips, advising Opposition MPs to remain silent and listen.
The budget, in which the Government projects it will spend $44.3 billion from October 1, 2009, to September 30, 2010, was predicated on a "conservative" oil price of US$55 a barrel, and a natural gas price of US$2.75 per million cubic feet. Minister Tesheira said the projected deficit was $7.7 billion, or 5.3 per cent of the Gross Domestic Product. Confirming an $11.5 billion budget shortfall in last year's package, Tesheira said that was caused not only by the decline in oil and gas prices, but also reduced prices of other petrochemicals.
Stiffer penalties
She outlined "significant increases in penalties" for certain road traffic offences, "in an effort to maintain order and safety on our nation's roads and to deter road traffic offenders." The Government was proposing that for use of a vehicle without park lights, improper overtaking on the left side of the road, overtaking traffic at a place dangerous to do so, exceeding the specified speed limit, the penalty would be increased from $200 to $2,000. And for using the Priority Bus Route without authorisation, delinquent motorists would be fined $2,000, instead of $200.
For motorists who instal illegal tints on their vehicles, "we propose to apply a fixed penalty of $2,000. "A fixed penalty of $2,000 will be applied to motor vehicles that are not fitted with seat belts." Tesheira stressed that Government would table legislation to make the use of child restraints in cars mandatory for children five years of age or under. The excise duty on local rum, beer and other alcoholic products would be increased by 15 per cent from today. A 30 per cent increase is being imposed on those beverages from outside the Caribbean.
Tesheira also said the Government also proposed to introduce a new four-tiered property tax regime, based on the present market values of properties. "In the case of residential, commercial and agricultural properties, the tax will be three per cent, five per cent and one per cent, respectively," she added. She said Motor Vehicles Transfer Tax is to be increased by 50 per cent.
She announced a stimulus package for small contractors which would "stimulate" the construction sector via building and refurbishment of community centres, health centres, schools, early childhood care centres, police stations, recreation centres and city/borough sidewalks. The budget debate resumes on Friday at 10 am when the Opposition will reply.
NEW MOTOR TAXES
? Used cars other than motorcycles over ten years old, from $100 to $150
? Used cars over seven years, but not more than ten years, from $900 to $1,350
? Used cars over five years, but not more than seven years old, from $2,000 to $3,000
? Used cars over two years old, but not more than five years old, from $3,000 to $4,500
? Used motorcycles, not exceeding 250cc, from $100 to $150
? Used motorcycles exceeding 250cc from $200 to $300
? And the cost of renewing drivers' licences will increase from $200 to $500 every five years
