VAT refunds are “not a favour”, president of the Trinidad and Tobago Manufacturers’ Association (TTMA) Emil Ramkissoon has said.
Speaking at the TTMA’s annual post-budget discussion at the Hyatt Regency (Trinidad), Port of Spain, yesterday, he said, “A VAT refund is not a favour to a manufacturer. It is money that belongs to the business.”
He emphasised that delayed funds left the company’s cash flow.
“When refunds are paid on time, the same money can be reinvested in new machinery, plant upgrades, technology, inventory, employee training, and expansion,” he said.
Ramkissoon continued, “And when a manufacturer reinvests, that investment will unavoidably lead to increased production. Increased production creates export capacity. Exports generate foreign exchange. Foreign exchange grows and strengthens the economy.”
He said this was why TTMA had consistently advocated for timely VAT refunds, including a system that prevents arrears from accumulating and expedites refunds for exporters.
Noting the new modernised regime for VAT mentioned in the 2026/2027 national budget Monday rather than sales tax mentioned in last year’s budget, Ramkissoon said, “We welcome the modernised VAT system to be implemented; however, we cannot wait any longer, as VAT has been a critical component for our members.”
Ramkissoon also welcomed the 25% reduction in excise tax on locally produced and imported alcoholic beverages (except products that benefit from preferential customs treatment under T&T’s existing trade agreements) but continued to advocate for the same reduction in the tobacco industry.
“A change in the method of calculating customs duties. Duties will be based on the product’s value (ad valorem rate) instead of the volume of alcohol. This is a win for us at the TTMA, as we have lobbied over the last year for this reduction to apply,” he said.
Pointing to the tobacco industry, Ramkissoon said, “However, we have advocated for the same reduction to be applied to tobacco, and are hopeful that the Government can take a deeper dive into this measure being assessed, as this sector is currently facing high levels of illicit trade, with approximately 12.8% as provided by stockholders’ data.”
But he noted Government’s proposed measures to tackle illicit trade, including its commitment to accelerate resources to the Anti-Illicit Trade Task Force and the implementation of the Customs Recordation and Information System.
Ease of doing business
Ramkissoon also highlighted the Minister of Finance’s announcement that the non-energy manufacturing sector grew by 11.6% and the food, beverage, and tobacco sector by 20.5% in the first quarter of 2026.
He welcomed several measures that can contribute to the ease of doing business, such as mandatory e-filing through the Board of Inland Revenue’s GenTax system; the Integrated Tax Processing System upgrade; and stronger tax-customs information exchange.
He also highlighted EXIMBANK’s restructured system in the 2026/2027 budget and noted the achievements such as revising the bank’s allocation framework to broaden access for small and medium-sized enterprises and manufacturers; introducing transparent eligibility criteria and stronger reporting arrangements; initiating a limit on allocations to individual entities; implementing dedicated access for eligible SMEs; and ensuring that greater consideration was given to businesses that either earned foreign exchange through exports or reduced the country’s dependency on imports.
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