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Trinidad and Tobago Considers VAT Exemption for Energy Sector to Improve VAT Returns

  • Finance Minister Colm Imbert is considering waiving Value Added Tax (VAT) for the energy industry in Trinidad and Tobago.
  • This is to help the government pay VAT returns to small and medium enterprises (SMEs).
  • The majority of VAT returns owed are to the energy sector, which is zero-rated.
  • Imbert believes exempting the sector from paying VAT could eliminate the problem.
  • He is also considering transitioning from VAT to a sales tax, but acknowledges the challenges involved.
  • Compliance with a sales tax may present similar or more problems than the current VAT regime.
  • The collection method for VAT is different from a sales tax, with VAT being added at each stage of the process.
  • Imbert is carefully examining the potential revenue and implications of implementing a sales tax.

Source: newsday.co.tt

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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