Minister of Planning, Economic Affairs and Development, and Minister in the Ministry of Finance, Dr. Kennedy Swaratsingh, has defended the government’s move to amend the duties on tobacco and alcoholic beverages, stating that it will lead to increased revenue and promote healthier lifestyle choices.
Speaking in the Senate on Wednesday, he said the amendments will yield an additional TT$1 billion in revenue for the country.
“Therefore, this decision to increase excise duties on rum, spirits, beers, and tobacco is in no way a punitive measure, but a planned and well-thought-out initiative aimed at a multi-pronged result for the physical, socio-economic, and future well-being of Trinidad and Tobago.”
Quoting from the World Health Organization, Minister Swaratsingh also emphasised the urgent health risks of tobacco usage.
“Tobacco is deadly in any form. Smoked tobacco products, including vapor pipes, contain over 7,000 chemicals, with a significant amount of these additives known to be toxic or to cause cancer. Use of smokeless tobacco products can also result in serious, sometimes fatal, health problems. There is global research that indicates lifelong tobacco smokers lose at least 10 years, Madam Vice President, of life on average.”
The Minister said the government’s excise duty measure on tobacco has the potential to save the public health sector close to TT$260 million.
“This, if done right, can provide us with much-needed resources to deal with other diseases affecting our populace, such as various types of cancer, diabetes, mental health issues, glaucoma, and much more.”
He also explained the government’s move to increase duties on alcoholic beverages by 100%: “The new excise orders effectively increase the rates of all products that can be in competition with beer, rum, and cigarettes locally. Therefore, it includes items such as whiskey, gin, vodka, cigarettes. The idea behind this is simple. If whiskey, gin, vodka, and other spirits are very close in price to rum, then consumers would gravitate towards these other products.”
In response to Minister Swaratsingh, Opposition Senator Vishnu Dhanpaul said the government’s decision appears to stem strictly for budgetary support, without necessarily addressing a serious public health issue in Trinidad and Tobago.
“The revenue raised will not be used to address the social costs of alcohol and tobacco consumption, including healthcare expenses, lost productivity, accidents, and crime. The revenue generated could have been directed towards treating addiction, health education campaigns, and supporting affected families.”
Independent Senator Anthony Vieira expressed concern over the lack of consultation with the sectors that will be affected.
“Businesses had already placed Christmas and Carnival orders, with containers en route to Trinidad when these new rates were gazetted. Unforeseen additional costs, disrupted cash flows and potential breaches of existing supply contracts. The absence of prior notice or a transitional period undermines business confidence and creates a perception of fiscal unpredictability.”
During the 2025 budget reading on October 13th, Minister of Finance Davendranath Tancoo announced a doubling of Customs and Excise duties on alcohol and tobacco products, with the goal of raising an additional TT$1 billion in revenue.