Finance Act 2017

BILL AN ACT to provide for the variation of certain duties and taxes and to introduce provisions of a fiscal nature and for related matters [Assented to 19th December, 2017] ENACTED by the Parliament of Trinidad and Tobago as follows: PART I PRELIMINARY

1. This Act may be cited as the Finance Act, 2017. Enactment Short title Third Session Eleventh Parliament Republic of Trinidad and Tobago REPUBLIC OF TRINIDAD AND TOBAGO Act No. 15 of 2017 [L.S.] Legal Supplement Part A to the “Trinidad and Tobago Gazette”, Vol. 56, No. 141, 21th December, 2017

2. (1) Sections 3, 4, 6, 7, 8 and 10 come into operation on 1st January, 2018. (2) Section 9(a) comes into operation on such day as is fixed by the President by Proclamation. PART II PRIVATE HOSPITALS

3. The Private Hospitals Act is amended in section 29— (a) in paragraph (a), by deleting the words “ten thousand” and substituting the words “one hundred thousand”; and (b) in paragraph (b), by deleting the words “two hundred” and substituting the words “fifteen hundred”. PART III MOTOR VEHICLES AND ROAD TRAFFIC

4. The Motor Vehicles and Road Traffic Act is amended in the Fourth Schedule by deleting paragraphs 8, 9 and 10 and substituting the following new paragraphs:

5. (1) Notwithstanding paragraph (1), motor vehicles tax shall not be charged, levied and collected in respect of a— (a) new motor vehicle, imported for private or commercial use, with an engine size not exceeding 1599 cc, which is manufactured to use compressed natural gas; (b) used motor vehicle, imported for private or commercial use, with an Chap. 29:03 amended Chap. 48:50 amended Commencement “No motor vehicles tax on vehicles manufac￾tured to use compressed natural gas 374 No. 15 Finance 2017

engine size not exceeding 1599 cc, which is— (i) manufactured to use compressed natural gas; and (ii) not older than four years from the year of manufacture; (c) new motor vehicle, imported for commercial use, with an engine size exceeding 1599 cc, which is manufactured to use compressed natural gas; and (d) used motor vehicle, imported for commercial use, with an engine size exceeding 1599 cc, which is— (i) manufactured to use compressed natural gas; and (ii) not older than four years from the year of manufacture. (2) Paragraph 8(1)(c) and (d) expire on 31st December, 2020. 9. (1) Notwithstanding paragraph (1), motor vehicles tax shall not be charged, levied and collected in respect of a— (a) new electric vehicle which is imported for private or commercial use, with an engine size not exceeding 159 kilowatts; (b) used electric vehicle imported for private or commercial use, with No motor vehicles tax on electric vehicles No. 15 Finance 2017 375

an engine size not exceeding 159 kilowatts, which is not older than four years from the year of manufacture; (c) new electric vehicle which is imported for commercial use, with an engine size exceeding 159 kilowatts but not exceeding 179 kilowatts; and (d) used electric vehicle imported for commercial use, with an engine size exceeding 159 kilowatts but not exceeding 179 kilowatts, which is not older than four years from the year of manufacture. (2) In this paragraph, an “electric vehicle” means a vehicle which is propelled by an electric motor powered by a rechargeable battery pack or other energy storage device. (3) Paragraph 9(1)(c) and (d) expire on 31st December, 2020. 10. (1) Notwithstanding paragraph (1), motor vehicles tax shall not be charged, levied and collected in respect of a— (a) new hybrid vehicle which is imported for private or commercial use, with an engine size not exceeding 1599 cc; (b) used hybrid vehicle imported for private or commercial use, with an engine size not exceeding 1599 cc, which is not older than four years from the year of manufacture; No motor vehicles tax on hybrid vehicles 376 No. 15 Finance 2017

(c) new hybrid vehicle which is imported for commercial use, with an engine size exceeding 1599 cc but not exceeding 1999 cc; and (d) used hybrid vehicle imported for commercial use, with an engine size exceeding 1599 cc but not exceeding 1999 cc, which is not older than four years from the year of manufacture. (2) In this paragraph, a “hybrid vehicle” means a vehicle which is capable of being propelled by a combination of an internal combustion engine and an on-board rechargeable energy system or other energy storage device. (3) Paragraph 10(1)(c) and (d) expire on 31st December, 2020.”. PART IV TREASURY BILLS 5. The Treasury Bills Act is amended in section 2(1)(a) by deleting the words “two thousand” and substituting the words “five thousand”. PART V INCOME TAX 6. The Income Tax Act is amended in section 14(5), by deleting paragraph (a). Chap. 71:40 amended No. 15 Finance 2017 377 Chap. 75:01 amended

PART VI CORPORATION TAX 7. The Corporation Tax Act is amended in the First Schedule— (a) by deleting paragraph 1 and substituting the following paragraph: “ 1. Subject to paragraphs 2, 3 and 4, the rate of corporation tax payable on the profits of a company is thirty per cent per annum.”; and (b) by inserting after paragraph 3, the following paragraph: “ 4. A person licensed to carry on banking business or the business of banking under the Financial Institutions Act, shall be subject to corporation tax at the rate of thirty￾five per cent per annum.”. PART VII VALUE ADDED TAX 8. The Value Added Tax Act is amended in the Second Schedule— (a) in item 8, by deleting subitems (2), (3), (4) and (5) and substituting the following subitems: “ (2) A— (a) new electric vehicle which is imported for private or commercial use, with an engine size not exceeding 159 kilowatts; Chap. 75:06 amended Chap. 75:02 amended Chap. 79:09 378 No. 15 Finance 2017

(b) used electric vehicle imported for private or commercial use, with an engine size not exceeding 159 kilowatts, which is not older than four years from the year of manufacture; (c) new electric vehicle which is imported for commercial use, with an engine size exceeding 159 kilowatts but not exceeding 179 kilowatts; or (d) used electric vehicle imported for commercial use, with an engine size exceeding 159 kilowatts but not exceeding 179 kilowatts, which is not older than four years from the year of manufacture. (3) In subitem (2), “electric vehicle” means a vehicle which is propelled by an electric motor powered by a rechargeable battery pack or other energy storage device. (4) A— (a) new hybrid vehicle which is imported for private or commercial use, with an engine size not exceeding 1599 cc; (b) used hybrid vehicle, imported for private or commercial use, with an engine size not exceeding 1599 cc, which is not older than four years from the year of manufacture; No. 15 Finance 2017 379

(c) new hybrid vehicle imported for commercial use, with an engine size exceeding 1599 cc but not exceeding 1999 cc; or (d) used hybrid vehicle, imported for commercial use, with an engine size exceeding 1599 cc but not exceeding 1999 cc, which is not older than four years from the year of manufacture. (5) In subitem (4), a “hybrid vehicle” means a vehicle which is capable of being propelled by a combination of an internal combustion engine and an on-board rechargeable energy system or other energy storage device. (6) Subitems (2)(c) and (d) and (4)(c) and (d) expire on 31st December, 2020.”; and (b) in item 43, by inserting after subitem (2), the following subitems: “ (3) New motor vehicles, imported for commercial use, with an engine size exceeding 1599 cc, which are manufactured to use Compressed Natural Gas (CNG). (4) Used motor vehicles, imported for commercial use, with an engine size exceeding 1599 cc, which are— (a) manufactured to use Compressed Natural Gas (CNG); and 380 No. 15 Finance 2017

(b) not older than four years from the year of manufacture. (5) Subitems (3) and (4) expire on 31st December, 2020.”. PART VIII MISCELLANEOUS TAXES 9. The Miscellaneous Taxes Act is amended— (a) by inserting after Part II, the following Part: “PART IIA LOTTERY WINNINGS TAX 22A. In this Part— “Board” has the meaning assigned to it under section 2 of the National Lotteries Act; “national lottery” has the meaning assigned to it under section 2 of the National Lotteries Act; “Tax Authority” means the Board of Inland Revenue. 22B. A tax, to be called “a lottery winnings tax” shall be charged on all prize money paid out in respect of any paper, ticket or token sold or issued in connection with a national lottery that is in excess of one thousand dollars. 22C. The lottery winnings tax under section 22B shall be charged at the rate of ten per cent. 22D. (1) The Board and its agents shall be responsible for withholding winnings tax before the payment of any prize money. Winnings tax Definitions Chap. 77:01 amended No. 15 Finance 2017 381 Rate of winnings tax Liability to pay tax

(2) Where the Board or any of its agents fail to withhold lottery winnings tax as required under subsection (1), the Board or its agent, as the case may be, shall in addition to the lottery winnings tax that was not paid, be liable to pay an additional amount of twenty-five per cent of the value of the lottery winnings tax to the Tax Authority. (3) Where the Board or any of its agents fail to withhold lottery winnings tax as required under subsection (2), the Board or its agent, as the case may be, shall be liable to pay interest on the entire sum at a rate of fifteen per cent per annum. 22E. (1) The Board shall in respect of all lottery winnings tax withheld by it or any of its agents in any month, pay the lottery winnings tax to the Tax Authority on, or before the fifteenth day of the following month. (2) Where the Board fails to pay to the Tax Authority lottery winnings tax in accordance with subsection (1), the Board shall, in addition to the lottery winnings tax that was not paid, be liable to pay an additional amount of twenty-five per cent of the value of the lottery winnings tax to the Tax Authority. (3) Where the Board fails to pay to the Tax Authority lottery winnings tax as required under subsection (2), the Board shall be liable to pay interest on the entire sum at a rate of fifteen per cent per annum. Payment of winnings taxes 382 No. 15 Finance 2017

(4) Payment of lottery winnings tax under subsection (1), shall be accompanied by a return in such form as may be approved by the Tax Authority and signed by a person authorized by the Board. 22F. The President may remit or refund lottery winnings tax to the Board or any penalty associated with the non-payment of lottery winnings tax if the Tax Authority is satisfied that it would be just and equitable to do so. 22G. (1) The Tax Authority may at any time audit the Board to ensure that the correct taxes are paid to the Authority. (2) The Tax Authority shall, in respect of the collection and recovery of lottery winnings taxes and an audit under subsection (1), have all the powers which the Board of Inland Revenue has in relation to income tax under the Income Tax Act.”; and (b) by inserting after Part III, the following Part: “PART IIIA ENVIRONMENTAL TYRE TAX 27C. In this Part, “Tax Authority” means the Comptroller of Customs and Excise. 27D. (1) A tax to be called “an environmental tyre tax” shall be charged on tyres imported into Trinidad and Tobago. Tax Authority may audit No. 15 Finance 2017 383 Interpretation Environmental tyre tax President may remit or refund taxes

(2) The environmental tyre tax under subsection (1) shall be twenty dollars on every tyre and shall be payable by the importer of the tyre to the Tax Authority. (3) Environmental tyre tax under subsection (1) shall only apply to tyres with the following tariff heading numbers under the Customs Act: (a) 4012.20.10; (b) 4012.20.90; and (c) 4012.20.00. 27E. The Comptroller of Customs and Excise may exercise the powers given for the collection, enforcement and management of duty under the Customs Act and any other written law in respect of the environmental tyre tax. 27F. The power of the President to remit or refund Customs Duty under section 9 of the Customs Act shall apply mutatis mutandis to the environmental tyre tax.”. PART IX CUSTOMS 10. The Customs Act is amended by repealing sections 45B and 45C and substituting the following sections: 45B. (1) Notwithstanding section 6 and the First Schedule, import duty shall not be imposed in respect of a— (a) new electric vehicle which is imported for private or commercial use, with an engine size not exceeding 159 kilowatts; Powers of the Comptroller of Customs and Excise Powers of the President 384 No. 15 Finance 2017 Chap. 78:01 amended “Exemption re electric vehicles

(b) used electric vehicle, imported for private or commercial use, with an engine size not exceeding 159 kilowatts, which is not older than four years from the year of manufacture; (c) new electric vehicle which is imported for commercial use, with an engine size exceeding 159 kilowatts but not exceeding 179 kilowatts; or (d) used electric vehicle imported for commercial use, with an engine size exceeding 159 kilowatts but not exceeding 179 kilowatts, which is not older than four years from the year of manufacture. (2) In this section, an “electric vehicle” means a vehicle which is propelled by an electric motor powered by a rechargeable battery pack or other energy storage device. (3) Subsection (1)(c) and (d) expire on 31st December, 2020. 45C. (1) Notwithstanding section 6 and the First Schedule, import duty shall not be imposed in respect of a— (a) new hybrid vehicle which is imported for private or commercial use, with an engine size not exceeding 1599 cc; No. 15 Finance 2017 385

(b) used hybrid vehicle, imported for private or commercial use, with an engine size not exceeding 1599 cc, which is not older than four years from the year of manufacture; (c) new hybrid vehicle which is imported for commercial use, with an engine size exceeding 1599 cc but not exceeding 1999 cc; or (d) used hybrid vehicle, imported for commercial use, with an engine size exceeding 1599 cc but not exceeding 1999 cc, which is not older than four years from the year of manufacture. (2) In this section, a “hybrid vehicle” means a vehicle which is capable of being propelled by a combination of an internal combustion engine and an on-board rechargeable energy system or other energy storage device. (3) Subsection (1)(c) and (d) expire on 31st December, 2020.”. PART X CENTRAL BANK 11. The Central Bank Act is amended in section 46(2), by deleting the word “fifteen” and substituting the word “twenty”. 386 No. 15 Finance 2017 Chap. 79:02 amended

Passed in the House of Representatives this 8th day of December, 2017. J. SAMPSON-MEIGUEL Clerk of the House Passed in the Senate this 12th day of December, 2017. B. CAESAR Clerk of the Senate (Ag.) No. 15 Finance 2017 387 PRINTED BY THE GOVERNMENT PRINTER, CARONI REPUBLIC OF TRINIDAD AND TOBAGO—2017