NOT SO FAST, IMBERT

IN its 2015 general election manifesto, the People’s National Movement (PNM) promised to decrease Value Added Tax (VAT) from 15 to 12.5 per cent.

Finance Minister Colm Imbert did so in his first Budget.

The PNM did not tell Trinidad and Tobago that it would introduce VAT on thousands of previous zero-rated food items.

Imbert imposed VAT on various food staples, also in his first Budget.

Many people felt deceived by the PNM.

Against that backdrop and several other scenarios since 2015, the PNM’s credibility has been on thin ice.

This is particularly amid the current deficit budgets, to which Imbert has responded with borrowings and an effort to scrape up as much taxes as he can.

In his now-exposed recent Cabinet note, Imbert offered some tax reviews for “consideration.”

The taxes include VAT, Income Tax, Corporation Tax, and Business Levy.

He also dangled a Drug Application Fee.

He did not explicitly recommend increased taxes.

But the implications of his note were evident: The Government could jack up these taxes to balance the Budget.

In separate documents, Imbert also advised Cabinet of a proposed $2.3 billion mid-year add-on to the 2023-2024 Budget.

The bloated Budget widened the gap between revenue and expenditure.

The Minister doth protest too much – to quote William Shakespeare – in his furious response to the disclosure of the Cabinet note.

He is wrong in his tough and angry response to Opposition Leader Kamla Persad-Bissessar’s expose.

The raw truth is that he had provided financial options to Cabinet to narrow the fiscal deficit.

Imbert’s anxiety to drag in additional taxes is why he is also pushing for the implementation of the Revenue Authority.

The authority is mandated to get into nooks and crannies that currently escape the tax man.

By the minister’s own projection, there will be a shortfall of $9 billion in revenues during the current fiscal year.

The deficit could be higher.

That sum adds to the bulging national debt.

The Government already has the Property Tax sitting on ice.

That measure is expected to be imposed if the PNM returns to national office after the forthcoming general election.

So, too, would be increased electricity rates.

A review of water tariffs is in the works.

And, with the National Insurance Scheme (NIS) going bust, higher contributions will be introduced to ensure solvency.

The retirement age will move to 65, meaning that relevant benefits will be shelved until then.

Imbert is on the hunt for money in light of the reduced returns of the energy sector and the absence of alternative growth industries.

All of this is in the context of higher taxes being an integral aspect of the DNA of the PNM.

The most obvious examples took place during the 1981-1986 administration of George Chambers, when higher taxes came flying from all directions.

Imbert’s Cabinet note uncovers advice on alternative sources of revenue.

On the eve of the election, the Cabinet decided not to touch the subject.

But it may yet return, this time when the dust settles after the polls.

Imbert’s hyperventilation on the issue is senseless.

Amid documentary evidence, his scorching denials are without merit.

Not so fast, Minister.