The Bankers Association of Trinidad and Tobago (BATT) has expressed concern about the proposal by the Minister of Finance to introduce legislation to encourage energy sector companies to remit all their taxes in US dollars.
In a news release commenting on the 2025 budget, BATT said, "Despite the obvious benefits to the government, BATT awaits further details on this proposal to fully understand its impact on the domestic foreign exchange market and the public."
In his budget presentation, Minister of Finance, Colm Imbert noted that only 50 per cent of energy sector taxes are paid in US dollars, although 100 per cent of oil, processed gas and petrochemicals are exported.
The organisation representing T&T's banks said it believes that the issuance of VAT refunds to small and medium-sized businesses by December 2024 and interest-bearing VAT bonds by January 2025 will provide some targeted relief to the cash flow challenges that often prevent SMEs from meeting their financial obligations.
"That said, we urge the government to commit to promptly paying VAT returns going forward to enable SMEs to invest in and grow their businesses," said BATT.
The country's banks said they have long championed digitisation as a means of making the T&T economy more competitive globally.
"We therefore support the development of the government’s digital infrastructure, since the expansion of digital capabilities is crucial for the growth of T&T," said BATT, adding, "Our banks reiterate their commitment to contribute to the country’s digital transformation to expand both financial and digital inclusion. In addition to improving the efficiency of social welfare programmes, the government’s plan to implement a Social Benefits Wallet supported by a National Electronic Identification – National e-ID, will help commercial banks to more easily identify fraudulent activity and reduce other cybersecurity risks."
BATT said it looks forward to details on when this initiative will take effect.
