TTRA Scrapped-Jobs Saved

The bill to repeal the TTRA was passed in the Lower House just after 1:15 am yesterday with 27 votes in favour, including support from Tobago East MP David Thomas.

Eleven of the 13 People’s National Movement MPs voted against it.

Opposition Leader Pennelope Beckles and Trincity/Maloney MP Camille Robinson-Regis were absent. Tobago West MP Joel Sampson was also absent.

Prime Minister Kamla Persad-Bissessar, in her contribution, described the TTRA Act as an “abysmal failure.”

She said if fully operationalised, it would have assumed political control of tax administration and enforcement in place of the revenue collection structures which have existed seamlessly since independence, 61 years to date.

The PM further stated that the TTRA was well on the way to becoming a “PNM party group”, adding that the act facilitated a high level of political influence.

“It might as well have been called the ‘Imbert’ because of the unprecedented amount of power that it gave to him,” she said, adding that such powers were “intrusive, wide, and varied”.

Finance Minister Davendranath Tancoo, who piloted the bill, stated the repeal would allow the Government to reinvest in the country’s existing revenue agencies, namely the Board of Inland Revenue (BIR) and the Customs and Excise Division, which the current administration intends to strengthen.

Economist: There was never any compelling need to create a TTRA

Guardian Media reached out to economist Dr Vaalmikki Arjoon, who said there was never any compelling need to create a TTRA.

“All we needed to do was solve the inefficiencies of the BIR–understaffing, outdated processes, weak compliance systems, insufficient training, etc. Instead of establishing the TTRA, which had significant startup costs and political baggage, the more logical and cost-effective approach would have been to strengthen the existing BIR and address these operational inefficiencies.

“This would have yielded far greater improvements in tax administration, broadened the tax base, and narrowed the $12 billion tax gap, all without raising tax rates,” he explained.