Trinidad and Tobago increased excise duties by 100% on locally and Caricom-manufactured beer, rum, malt beverages, cigarettes, and tobacco, aligning import rates with domestic products. The move, part of the 2026 Budget, is expected to generate $1 billion in revenue while aiming to reduce smoking and alcohol consumption, planning minister Kennedy Swaratsingh said.
The government emphasized that the increases also protect local manufacturers from unfair competition with Caricom imports and address illicit trade in cigarettes, with additional enforcement measures planned. Duty rates on foreign alcohol and tobacco remain high, ensuring price buffers for imported products.
“In some instances, cigarettes that are manufactured locally for export to other Caricom markets are smuggled back into T&T and are now cheaper, as excise duties and customs duties haven’t applied,” Swaratsingh said. “To combat illicit smuggling that hurts local manufacturers, Government intends beefing up Customs and Excise’s enforcement apparatus, ensuring a more level playing field for local manufacturers.”
Swaratsingh also said the government is monitoring vapes, pointing to their growing use among younger generations and potential health risks, signaling possible future regulation of e-cigarettes in T&T.
“Vapes are also harmful,” Swaratsingh said. “Studies are still being done to determine the extent of damage they cause compared to cigarettes. Government is looking and will contemplate the required action against vapes in the near future.”
Swaratsingh said the Budget’s decision to increase excise duties on “sin products” isn’t a punitive measure, but a planned and well-thought-out initiative aimed at a multi-pronged result for T&T’s physical, socio-economic, and future well-being.
