MEDIA RELEASE
12/10/2026
AMCHAM T&T Welcomes Budget 2027 Reforms, Urges Laser-Sharp Focus on Implementation, Forex Access, and Investment Competitiveness
The American Chamber of Commerce of Trinidad and Tobago (AMCHAM T&T) has reviewed with interest the presentation of the National Budget for Fiscal 2027 by the Honourable Minister of Finance, Davendranath Tancoo. We commend the Government's continued commitment to addressing structural bottlenecks through institutional modernization, enhanced revenue administration, and strategic investments in energy and economic diversification.
Trinidad and Tobago enters Fiscal 2027 at a pivotal crossroads. Based on the announcements today, the possibility of upward of 1B s.c.f. of gas coming online during 2027 provides some reason for optimism, especially with new petroleum announcements being likely in the coming months. However, while businesses maintain measured confidence, persistent headwinds – chiefly foreign exchange constraints, economic uncertainty, and operational costs – continue to temper investment and expansion. AMCHAM T&T firmly believes that the true measure of Budget 2027 will not merely be policy announcements, but the speed, transparency, and accountability with which these commitments are translated into measurable results.
Encouraging Strides in Institutional Reform and Trade Facilitation
AMCHAM T&T welcomes the decisive steps taken to modernize public institutions, including ongoing upgrades to the Inland Revenue Division (IRD) and the Customs and Excise Division (CED) via ASYCUDA and ASYHUB integrations. The hiring of additional staff to support the efficacy of these critical institutions is long-overdue. These steps align closely with long-standing recommendations from our membership to streamline trade and eliminate administrative friction.
We also note with approval the decision to modernize the VAT system following the independent diagnostic review. However, outstanding income tax and VAT refund obligations remain a critical drag on corporate cash flow and working capital. We strongly advocate for a transparent, time-bound mechanism to fully clear these arrears, prevent future backlog, and fully implement the new systems. Furthermore, the exploration of a National Fiscal Responsibility and Resilience Framework, and annual Fiscal Strategy Statements represents a welcome advancement toward greater medium-term predictability and investor confidence.
Fiscal Prudence and Safeguarding Competitiveness
While we acknowledge the projected reduction in the fiscal deficit from TT$7 billion in FY2026 to TT$3.639 billion in FY2027, the underlying structure of public finances demands vigilant management. We note that in the past two decades, this deficit was significantly increased in the mid-year review of the budget. Relying on fiscal assumptions of US$77 per barrel for oil and US$5.00 per MMBtu for natural gas underscores the need for strict expenditure efficiency and broader economic productivity rather than heavier taxation. Moreover, improving the execution rate of the Public Sector Investment Programme (PSIP) is vital to delivering critical infrastructure and stimulating economic activity.
Several revenue-raising measures warrant careful review to avoid dampening business sentiment. Specifically, the proposal to limit the utilization of carried-forward losses to 75 percent of chargeable profits, alongside adjustments to withholding and cross-border service taxes, risks imposing cash-flow strains on companies recovering from downturns or committing to capital-intensive start-up projects. The adjustment to the losses carried forward requires greater clarity, as it is implemented to address issues such as the period of eligibility. Greater clarity on the proposed implementation of the digital services tax will also be helpful.
Energy Security, Foreign Exchange, and Economic Diversification
Energy remains the lifeblood of our economy. We welcome aggressive timelines for new upstream gas supplies and the promotion of downstream industrial stability. However, a transparent, predictable gas allocation and pricing framework remains essential to protect downstream petrochemical capacity and preserve high-value employment.
Foreign exchange availability remains the single most pressing operational challenge for our membership, with 66.7% of surveyed businesses citing it as a major barrier. While we acknowledge structural interventions via the EXIMBANK and increased monthly interventions by the Central Bank to commercial banks, a durable solution requires a concerted push toward export expansion, digital services, and inward foreign direct investment.
Turning Policy Into Partnership
AMCHAM T&T remains fully committed to working collaboratively with the Government, labour, and civil society. Sustainable prosperity will be achieved not only by how efficiently the State collects and allocates revenue, but by how effectively we empower the private sector to invest, innovate, create jobs, and build a resilient, future-ready economy.
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For further questions or comments, please contact:
Nirad Tewarie, CEO AMCHAM T&T at niradtewarie@amchamtt.com.