Super gasoline and diesel prices to rise 15% in Trinidad & Tobago: Finance Minister Colm Imbert
Monday, October 05 2015 @ 03:33 PM AST
Contributed by: bngs
Above UPDATED Saturday, April 8, 2016
Finance Minister Colm Imbert announced this today during his 2015/2016 budget statement in Parliament in Port of Spain.
Restoring Confidence and Rebuilding trust - let's do this together! -- was the budget theme
Budget calculated on a US$45 per barrel of oil price; and US$2.75 per mmbtu (Henry Hub) gas price, and US$8 per mmbtu gas price in Indonesia.
"Current (forex) situation is untenable": Imbert said
Central Bank asked to re-establish forex distribution system of prior to 2014: Imbert said
Central Bank asked to clear backlog of requests for US dollars: Imbert said
IMF WAS HERE:
IMF team visited just after the election at invitation of govt: Imbert
MORE from Imbert:
- Output declined in energy sector and in non-energy sector too
- Energy exports fell in 2015 to US$7.5 billion from 2010-2014 average of US$12.7 billion
- "Sharp decline in export receipts"
- Overdraft of Central Bank was 90% "over limit" but crisis was averted.
- Corporation taxes from energy companies will be nominal this year when it exceeded $18 billion previously.
- "Continued and sizeable deficits over next 3 years" must be avoided: Imbert
- Energy sector contribution to GDP fell to 37.2% in 2014 from 40% previously: Imbert
- On diversification, Imbert promises:
- - to re-take up the international financial centre (IFC)
- - create a ship building industry using existing dry dock facilities
- Tobago gets $2.772 billion allocation or 4.4% of national budget - above the legal limit.
- Government to increase business levy; commence reduction of fuel subsidy; phase in property tax and more.
- Free internet coming throughout country, starting with free hotspots, and free broadband internet in schools.
Trinidad and Tobago presents $63 billion (an almost US$10 billion) budget 2015/2016.
Imbert aims to balance budget by 2018.
Expenditure in 2015/2016 projected at $63 billion (including $5 billion in one-off arrears payment to public sector workers)
Revenue projected in 2015/2016 at $60.28 billion
- Revenue from oil in 2015 was $13 billion, which is $8 billion less than budget estimate
Deficit for FY 2015/2016: 2.8 billion or 1.7% of GDP
Deficit for FY 2014/2015: $7 billion or 4.2% of GDP
- Imbert wants "to get out of the trap of spending more than we earn."
GDP forecast: 1%-1.4% per year over next three years
In March 2016 government will do mid-year review of budget.
- VAT reduced to 12.5% from 15%
- Threshold for (merchants) paying VAT raised from $360k income per year to $500k income per year effective January 1, 2016
- Property tax will be introduced from January 1, 2016
Trinidad and Tobago government will reduce its fuel subsidy, and increase the prices of super gasoline from $2.70 per litre to $3.11 per litre, and of diesel, also by 15%, from $1.50 per litre to $1.72 per litre immediately. Imbert said this measure will reduce annual fuel subsidy by $340 million, yet the fuel subsidy in 2016 will still exceed $1 billion.
Gas stations were filled with people filling up this evening.
For the full budget documents visit: http://finance.gov.tt/budget-statemen...sentation/