RUSHTON PARAY
The Minister of Finance and the UNC administration have made a decisive start by committing to repeal the TTRA and withdrawing the residential property tax regime.
The announcement to refund citizens who already paid sends a strong message: this government intends to lead with fairness, transparency and a reset in the relationship between the State and the taxpayer. That tone is welcomed after years of heavy-handed measures and declining public trust.
Still, these decisions carry fiscal consequences.
The country will lose potential revenue streams and there is a need to act quickly to fill those gaps with smarter, more equitable alternatives. What follows is a practical roadmap built around international examples and policy ideas that align with the government's stated goals of growth, equity and good governance.
The energy sector remains central, but it's in trouble. Production is falling and the optimism around LNG contract renegotiations won't be enough without new gas coming online.
The UK has used upstream fiscal incentives tied to investment and production timelines to stimulate exploration in mature basins - TT should follow that model and accelerate decisions on marginal fields and brownfield expansion.
Government's position to withdraw from coercive tax structures creates space for more effective and citizen-friendly revenue management. Instead of the Revenue Authority, modernise the existing BIR and Customs using digital tools and performance contracts.
Estonia's tax system, almost entirely online, offers a clear model. In place of residential property tax, a modest levy on unused commercial lands and buildings or idle state/private assets could create revenue while encouraging productive use of land and buildings.
Economic diversification must go beyond Cabinet notes and slogans. Key opportunities lie in agro-processing, tech services, renewable energy, and niche manufacturing. Special Economic Zones with regulatory support and tax relief - similar to the UAE's model - can help drive investment into these areas without distorting the broader tax regime.
The forex market still suffers from restricted access and low transparency. A managed forex auction platform can help distribute scarce forex more fairly while maintaining market discipline.
Bangladesh and Nigeria have implemented versions of this system with positive effects on predictability and planning for businesses.
Inflation, particularly in food and fuel, continues to affect working families. The liberalisation of diesel prices, for example, is still filtering into transport and food costs. Instead of returning to broad subsidies, Government should consider a digital voucher system for low-income households, funded by savings from better-targeted social spending. Chile's direct cash transfer system is a good benchmark.
On public debt, the new minister inherits a country still recovering from heavy borrowing during the pandemic and the post-2016 energy shock. A new medium-term fiscal framework shoul
