Few industries in T&T operate with margins as thin and expectations as high as Carnival. For masquerade bands, where the product is not simply a costum,e but an all-inclusive, all-immersive experience, every component now sits under scrutiny following the Government’s 100 per cent hike in customs and excise duties on alcohol and tobacco products.
Those measures were announced by Minister of Finance Davendranath Tancoo during his October 13 budget presentation, in which he said that 80 per cent of the projected revenue increases in the 2026 budget are attributable to the hike in customs duties on alcohol and tobacco products.
Under the revised structure, duties on rum and spirits doubled, rising from $79.25 to $158.50 per cent of alcohol content. Beer duties also doubled from $5.14 to $10.28 by gravity.
Sunday Business Guardian spoke to bandleaders and creative entrepreneurs who acknowledged that the fiscal adjustments have forced an unavoidable recalibration of inputs, pricing models and long-term planning. Yet, with Carnival 2026 already locked in, most are determined to shield masqueraders from the full impact at least for now.
Cost shock
President of the T&T Carnival Bands Association (TTCBA) and bandleader of Dirty, Medics Carnival, Mark Ayen, described the sector’s response as a balancing act between fiscal reality and customer expectation. He acknowledged that the new duty structure has hit the industry at a difficult and fully committed juncture.
“As a bandleader, I have daily and frequent conversations with our members, and it is going to pose a problem, because there is going to be an increase in the overhead,” Ayen said. “Many of these bands are now all-inclusive, so the onus is on the bands to provide this aspect, which includes alcohol. So there’s, without a doubt, going to be an increase in price.”
Ayen indicated that while bands understand the Government’s revenue-generation priorities, the timing has created a constraint: Carnival 2026 mas band prices were already announced and paid for.
“It would be unethical for bands to change their prices at this point,” he highlighted. “We as bandleaders now have to look at avenues where we could probably cut on certain costs so we can absorb that increase somehow.”
He stressed that cost-cutting will not involve reductions in quality.
“Bands no longer just provide costumes; they provide an experience. And all of this is part of the experience. We have to find ways to mitigate the increase in these costs. But it is really going to be difficult.”
Pressed to quantify the impact, Ayen said his own band’s internal projections confirm a steep rise.
“By my personal experience with my band, we have already seen a 20 per cent increase in our costs where alcohol is concerned,” he explains. “It is a huge jump, most definitely because of the products that are now consumed within the experience. It’s not puncheon and White Oak alone. We have to offer premium drinks.”
Ayen noted there has been no formal call from TTCBA’s membership for an emergency meeting, but informal concerns are widespread.
And while he welcomes dialogue with the government, he is realistic about the policymaking environment: “I am always open to communication and consultation where this is concerned. If we have the ability to seek guidance or consultation, we will do so. But the Government has its policies, and we are here to abide by them.”
Looking toward 2027, he acknowledged that costume prices will eventually rise.
“Basic economics dictates that the cost of costumes will increase. But again, it is not the costumes, it is the experience that is going to increase,” said Ayen.
No cutbacks
For veteran bandleader Ronnie McIntosh of Ronnie and Caro, the increase adds to an already tight operating framework. His assessment is pragmatic: the band has no space to retreat on quality, service or amenities, regardless of the additional financial burden.
“At the end of the day, we have no choice,” McIntosh said. “We would have had our crisis situation in place since June, so there is nothing we can do. We can’t increase prices. We can’t do anything. And we are definitely not going to cut back. We’re not going to cut back to affect our service.”
He reinforced that masqueraders would receive the full premium experience they paid for.
“Our masqueraders can expect the same level of service, the same premium variety of drinks. We’re not going to cut back at all,” he said.
McIntosh declined to critique the timing of the Government’s policy.
“I have no comment to make. All administrations make decisions. Sometimes one sector is affected, sometimes another. It doesn’t matter when you do it,” he said. “We will deal with it.”
He noted that while registration is progressing well, the financial pressure is real and ongoing. Asked whether overheads have increased by 10 per cent or 20 per cent, McIntosh said the band is still working through the numbers.
“I haven’t done that yet. Price going up is all I know,” he said. “You can’t cut back on the music, on mobile restrooms, on DJs. There’s nothing we can do to cut back. We just have to live to fight another day.”
McIntosh is more expansive in discussing the broader economics of T&T’s Carnival, warning that rising costs across the ecosystem may be jeopardising the festival’s value proposition for international visitors.
“We are becoming the most expensive Carnival in the world,” he argues. “And that starts from airlines. That goes from airlines to hotels, Airbnbs, fete tickets, and costuming. When you check the full breakdown of a plane ticket, accommodations, rentals, fetes, costumes, people are spending between US$8,000 and US$10,000. And America is not doing that well.”
McIntosh’s point is sobering: as Carnival inflation accelerates, the global competitiveness of T&T’s marquee product may be under threat.
Work With Us
For Spirit Mas, the increase represents not only a financial shift but a challenge to the operational stability of a band that employs more than 1,000 people during the Carnival season. Its financial director, Dr Justin Ram, underscores the immediate implications and the broader economic potential of the creative sector.
“Undoubtedly, the increase in excise duties on alcohol has increased the cost of the masquerader experience that we provide,” Ram said. “Our band was already sold out when the Government announced the increases, so we will absorb the additional costs this year without compromising the value and quality of service we provide.”
Ram emphasised that employment levels will remain stable. “We will continue to retain our full-time and part-time employees. Our band employs many people, full-time staff, casual workers and provides indirect employment for many others,” he outlined. “During the Carnival season, we employ over 1,000 people. Many people depend on the band for their livelihoods.”
He mentioned that Spirit Mas is effectively a medium-sized enterprise with significant growth potential.
“We contribute significantly to the year-round economy as an MSME, and we have considerable potential to continue growing and employing many more people,” Ram said.
His central message, however, is a call for structured policy engagement between the Government and the Carnival sector.
“We want the Government to succeed while we continue to grow and contribute more to the economy,” Ram explained. “Carnival has considerable potential to help grow our economy, employ many more people year-round, and contribute more to government fiscal revenues. We therefore ask that the Government work with us on policies that affect our business, so that both sides benefit and continue to have a positive impact on the economy.”
