Millionaire tax for T&T

Rich folks, get ready to pay (Trinidad Express) more.

Finance Minister Colm Imbert announced during the reading of the 2016-2017 Budget yesterday that anyone making over $1 million in income annually will pay a 30 per cent personal tax.

Those making less than $1 million will continue to pay a 25 per cent tax.

And companies making $1 million in profit annually will also be subject to a high tax bracket.

The new millionaire tax is expected to earn the country an additional $60 million in revenue.

And the additional tax on the million dollar business will earn the country an estimate $500 million says Imbert who delivered his statement in the Parliament in Port of Spain on Friday afternoon.

“We must ways and means of closing the fiscal gap”, he said.

Imbert said that in 2017, core revenue defined essentially as revenue from taxation, royalties and customs duties, is projected to be of the order of $37 billion, $20 billion less than two years ago.

This leaves a fiscal gap in 2017 of over $16 billion which must be financed by a combination of borrowings and drawdowns from the Heritage and Stabilisation Fund and one of sources of income such as a sale of assets, dividends from State enterprises, lending such as from the Clico bailout.

Imbert said that new sources of sustainable revenue and savings in transfers and subsidies must also be identified to help bridge the gap.