Thursday, September 9 2010

Manufacturing businesses will gain from an increase in the wear and tear allowance from ten percent to 25 percent (except for buildings), to assist in the quicker write-off of assets. The regulations for customs entry will also be relaxed, with only goods valued over $20,000 now requiring customs entry (as opposed to goods over $1,000). There will also be tax allowances for persons and businesses who contribute to the Children’s Life Fund, a fund for terminally ill minors.

The State will also slash Petroleum Profits Tax from 50 percent to 35 percent in respect of deep water blocks. Additionally, a reduction of 20 percent on supplemental petroleum tax rates and an investment tax credit of 20 percent on capital expenditure will also be granted amidst other measures to stimulate the petrochemical sector.

There will be additional funding for the fashion and music industries, as well as a partnership with the Artists Coalition of Trinidad and Tobago on a planned National Heroes Policy aimed at promoting the legacy of local artists. There will also be a review of the Trinidad and Tobago Film Company and the Trinidad and Tobago Entertainment Company.

Of several measures outlined to deal with National Security, Dookeran announced a plan to pay a tax free special duty allowance to 7,000 police officers from October 1, 2010. Cops are now expected to up their visibility by increasing bicycle patrols.

Dookeran said the GATE, Conditional Cash Transfer Programme; School Feeding Programme; CDAP and URP will be untouched. A Milk Feeding Programme will now compliment the School Feeding Programme. An elderly mobile shuttle service introduced, in addition to legislation to deal with homes for older persons. A tax amnesty for income-tax filings takes effect immediately and will last until May 31, 2011.

The Finance Minister also announced a revamp of the Scarborough International Airport, amidst a cluster of measures revealed for Tobago last week by the Prime Minister. Tobago received an allocation of $2.6 billion, or 5.24 percent of total expenditure.

This, Dookeran said, was notably higher than the four percent allocation as required by law. Debate on the Budget, which is formally called the Appropriation (Financial Year 2011) Bill, will kick-start next Tuesday with the response of Opposition Leader Dr Keith Rowley.