Finance Minister Davendranath Tancoo has unveiled a suite of revenue-raising measures in the 2027 national budget aimed at reducing the country’s fiscal deficit from $7 billion to $3.639 billion. The measures, most of which take effect on January 1, 2027, target high-volume electricity consumers, luxury imported goods, corporate tax loopholes, and energy sector profits while protecting low-income households.
Under the new framework, residential consumers who consume more than 3,000 kilowatt-hours per billing period will face an additional surcharge of five cents per kilowatt-hour applied strictly to usage above that threshold. Tancoo stated that the policy will impact approximately 10% of consumers, leaving the remaining 90% of electricity users unaffected. The surcharge is expected to collect $17.8 million annually, which will help finance existing electricity subsidies for lower-income households.
The budget introduces targeted changes across several consumer goods categories:
- Imported Alcohol: While excise rates will be reduced by 25%, volume-based customs duties on certain imported alcoholic beverages will be replaced with an ad valorem system based on product value, increasing the overall cost of high-end “luxury” items such as champagne.
- Vaping and Tobacco: A 20% customs duty will apply to vaping products, along with new regulations prohibiting sales to individuals under age 21. Tobacco controls will also tighten, establishing possession of 10,000 or more tobacco products as prima facie evidence of distribution.
- Classic & Vintage Vehicles: Motor Vehicle Tax rates will increase by 100% for classic vehicles, 50% for antique vehicles, and 25% for vintage vehicles.
Businesses and energy companies will account for the largest share of new revenue, projected to generate approximately $985.1 million.
