Imbert: Less revenue from rum

Reminding senators that customs duties were increased on alcoholic beverages and tobacco products by 20 and 15 percent respectively, Imbert said the excise duties on these products were increased on these respective products by similar percentages. He said the increased duties could provide an additional $60 million in revenue to the country and it costs taxpayers $500,000 per year, “to treat just one lung cancer patient.” Comparing figures from October- December 2015 to October- December 2016, Imbert said there had not been any real change in revenues collected from taxes on beer or cigarettes.

In the case of beer, Imbert said revenues $47 million in 2015 and $54 million in 2016. He said revenues from cigarettes were $50.8 million in 2015 and $58 million last year. However Imbert said the noticeable change was in revenues collected from rum and spirits.

Indicating it was too early to know the real reason for the decline from $57 million to $36 million, Imbert said his preliminary research suggests that rum and spirits retailers chose to “exhaust their inventory” over the Christmas period. He said this resulted in rum and spirits being sold at the old prices. Imbert indicated that by the first quarter of this year, there should be an increase in revenue from taxes on alcohol and spirits.

Senators laughed when Imbert remarked, “Rum and spirits have a long shelf life. This is what I have been told. This is something that I cannot say I have a lot of experience in.” Indicating that price increases in alcohol have not reached the level to curb consumption of these products, he said this was because consumers, “don’t have any option, unless you get involved in some sort of illegal activity.” Stating this speaks to the issue of inelastic taxes, the minister disclosed that prior to the removal of taxes on hybrid vehicles in 2015, less than 20 of these vehicles were imported into TT. He said once these taxes were removed, “453 hybrids came into the country.” In his contribution, Opposition Senator Wade Mark reiterated his charge that the taxes being imposed were illegal. He called for the motions to be withdrawn or for Imbert to “withdraw from the Cabinet.” Last November, in response to the same claims by Mark, Imbert said the taxes outlined in the 2016/2017 Budget are all “perfectly legal.” At that time, he referred to a legal opinion from the Treasury Solicitor which he received on this issue as well as on the online tax announced in the Budget.

Mark yesterday said the Opposition got that opinion by “innovative means” and wondered whether Imbert consulted with the Parliament’s officers regarding the contents of that opinion.