Trinidad and Tobago plans to impose a 12.5% value-added tax on digital services supplied by foreign providers and a surcharge on high residential electricity consumption as part of measures expected to raise TT$1.18 billion in fiscal 2027.
Finance Minister Davendranath Tancoo announced the proposals in Parliament on Monday while presenting the 2027 budget, despite earlier government assurances that household electricity rates would remain unchanged.
The digital services tax, scheduled to take effect on March 1, 2027, would cover streaming platforms such as Netflix, Hulu, Apple TV, HBO Max and Disney+. It is expected to generate TT$18 million.
Tancoo said foreign suppliers would be able to register, collect and remit VAT electronically through a simplified system.
“This measure will broaden our tax base, strengthen the collection of VAT and promote more consistent tax treatment between services supplied from abroad and those supplied domestically,” he said.
Residential customers would also face a surcharge of five Trinidad and Tobago cents per kilowatt-hour on consumption above 3,000 kilowatt-hours during a two-month billing period, beginning on January 1, 2027.
The surcharge is projected to raise TT$17.8 million. Tancoo said households with moderate electricity consumption would remain unaffected and the proceeds would help fund existing subsidies for those with very low usage.
The announcements followed Prime Minister Kamla Persad-Bissessar’s response of “No taxes” when Guardian Media asked before the budget presentation whether the package would include new taxes.
Public Utilities Minister Barry Padarath had also reaffirmed a campaign pledge in May 2025 to keep electricity and water rates unchanged.
The streaming tax and electricity surcharge together account for TT$35.8 million of the revenue expected from nine new measures. The full package represents about 1.97% of projected government revenue of TT$59.729 billion.
The largest anticipated contribution, TT$430 million, would come from limiting the accumulated losses businesses can use to reduce taxable profits.
Tancoo proposed capping the use of carried-forward losses at 75% of chargeable profits in any income year. He said the change sought to balance support for businesses recovering from financial difficulties with the need for profitable companies to contribute to government revenue.
Source: NEW ROOMS SITE
