Trinidad and Tobago’s Finance Bill 2025 — a sweeping package of legislative reforms that includes several new road traffic penalties — was passed in Parliament on December 5 with the support of the Government’s majority.
The bill was piloted by Finance Minister Davendranath Tancoo, who said the reforms mark a decisive step toward strengthening governance, modernising outdated laws, boosting public safety, and ensuring greater fairness in the country’s tax system.
Tancoo outlined 23 clauses that amend 21 pieces of legislation, noting that the measures will update penalties, close loopholes, modernise institutions, and introduce new revenue streams while fulfilling several key campaign promises.
Tougher traffic penalties
Road users will face higher fines under clauses 10–12, with increases for traffic offences, operating maxi-taxis without permits, and violations under the Motor Vehicles and Road Traffic Act.
Tancoo said the changes form part of the Government’s strategy to improve public safety, reduce traffic violations, and ensure penalties match current socio-economic conditions. He added that raising fines is intended to “send a clear signal that road traffic offences are serious breaches of the law” and pose risks to lives and property.
New taxes and revenue measures
Clause 18 introduces several new tax measures, including the Commercial Asset Levy — a 0.25% levy on the total assets of licensed financial institutions and local insurers. These institutions must file annual returns, with penalties applied for late submission or payment.
Tancoo said the levy ensures large financial entities “make a fair and proportionate contribution to national revenue”. The Board of Inland Revenue will be empowered to enforce compliance.
A new surcharge on rental income, paired with mandatory property registration, will also take effect. Rates include:
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2.5% on quarterly rental receipts of $20,000 or less
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3.5% on amounts above that threshold
Unregistered rental activity and false declarations will attract penalties of $250,000 and three years’ imprisonment.
Tancoo argued that the measure is more equitable than the repealed property tax because it is based on “actual rental receipts as opposed to the PNM’s fictional rent”.
The bill also institutes a five-cent electricity surcharge per kilowatt-hour on commercial and industrial consumption, collected through T&TEC and remitted quarterly. Schools, healthcare facilities, and other public institutions are exempt.
Additionally, a 5% tax will be applied to the CIF value of specified imported single-use plastics, such as bags, packaging, cutlery, and PET preforms. Tancoo said this aligns Trinidad and Tobago with global environmental standards.
Governance and institutional reforms
Clause 2 amends the Prime Minister’s Pension Act to revise the recalculation formula for former prime ministers. Tancoo said the change aligns the act with the tiered, merit-based pension system introduced earlier this year.
Clause 3 modernises the Gambling and Betting Act, imposing significantly higher fines and tougher custodial penalties for illegal lottery operations. Tancoo said police advised that illegal gambling is deeply linked to “tax evasion, money laundering, prostitution and drug trafficking”.
“For too long, illegal gambling has thrived due to low and outdated penalties. All illegal lottery activities will not be tolerated,” he said.
Clause 4 updates the Immigration Act to strengthen border security, improve efficiency, and support a transition to electronic declarations. “It is no secret that our border control systems are weak… We must protect our citizens and that is what we are doing here today,” Tancoo said.
Clause 5 legally authorises the Governor of the Central Bank to receive statistical information, formalising a long-standing practice.
Clause 6 introduces wide-ranging changes to the National Lotteries Control Board (NLCB), including:
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broader purposes for the use of lottery proceeds,
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quarterly (rather than annual) deposits into the Consolidated Fund,
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caps on expenditure categories, and
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a new offence criminalising the printing, selling, or distribution of tickets based on NLCB online draw results.
Penalties range from $250,000 and three years’ imprisonment on summary conviction to $3 million and seven years’ imprisonment on indictment.
Clause 7 strengthens penalties related to illicit sales, advertising, and distribution of tobacco products, particularly those targeting minors.
Clause 8 introduces updated contribution tables for the National Insurance Fund — reforms Tancoo said the previous administration had “abandoned”, placing entitlements at risk. He emphasised that the Government worked closely with the NIBTT and stakeholders.
Clause 17 formally repeals the Property Tax Act. Calling it “a blight inflicted on the people of this nation”, Tancoo said its repeal represented “another promise made and kept”.
The House was adjourned to December 9 at 1:30 p.m.
