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Although an important part of T&T’s economy, the manufacturing sector’s performance has been disappointing in recent years. According to the T&T Manufacturers’ Association, the value of manufacturing output declined at an average annual rate of 4.3% from 2010 to 2014. In its “Review of the Economy 2014”, the government noted that economic activity in manufacturing fell by 5.8% in 2012, 1.8% in 2013 and was expected to register a further contraction of 0.7% in 2014. Even so, T&T has the largest manufacturing sector in the Caribbean, with an estimated output value of around $1.2bn in 2014. The second-largest non-oil sector within the economy, manufacturing represented about 8.5% of GDP in 2014, and directly employed more than 60,000 people. Following the fall in global hydrocarbons prices, 2015 is expected to be a challenging year for the industry, marked by fiscal austerity and a potential reduction in household consumption. This chapter contains an interview with Racquel Moses, President, InvesTT.

The transport sector is becoming a priority for the government of T&T, as it works to establish a network of transport links capable of supporting economic growth throughout the country. A series of projects are now under way, including the Galeota Port project and the San Fernando-Mayaro highway, both of which are expected to support economic development and contribute to the decentralisation of activity. Though lower hydrocarbons prices and policy uncertainties connected to T&T’s 2015 election are having an impact on transport and logistics, the outlook for the sector remains positive, with significant investment in infrastructure either currently moving forward or already in the planning stages. The trends supporting passenger and freight demand are set to continue, and while the next government may reassess some policies, it will be able to do so in the context of moderate growth. This chapter contains an interview with Michael DiLollo, CEO, Caribbean Airlines.

The telecoms and broadcasting markets in T&T are both dynamic and profitable. The two major mobile operators – Digicel and TSTT, operating under its Bmobile brand – are benefitting from rapid growth in mobile broadband internet access. A shake-up in the duopoly is expected following a government announcement in 2014 inviting bids for a third mobile licence, as well as offering spectrum in the 700-MHz, 800-MHz and 1900-MHz bands. While industry revenues are likely to continue growing at a moderate rate, the move from a duopoly to one with three main players is expected to exert downward pressure on rates and accelerate the move from voice to VAS, with operators seeking new ways to promote mobile usage. In the ICT sector, reduced government revenues resulting from the fall in oil prices could have an impact on some of the ICT development programmes currently under way. This chapter contains an interview with Cris Seecheran, CEO, Telecommunications Authority of Trinidad and Tobago (TATT).

Buoyed by revenues from the oil and gas industry, education is one of T&T’s strengths. In its “Global Competitiveness Report 2014-15”, the World Economic Forum ranked T&T 44th for the general quality of its education system, 43rd for primary education, 35th for maths and science, and 33rd for its management schools, out of 144 countries. Unsurprisingly, the government has made education a priority, allocating 15% of total spending to the sector in the 2015 fiscal year. Meanwhile, as the prevalence of non-communicable diseases rises, T&T’s public health care system is working to expand services while coping with labour shortages. A move to a National Health Insurance System, in which health care is largely funded by a levy on the working population, is being contemplated by authorities. In the meantime, deficiencies in the public system are likely to generate opportunities for health insurers as wealthier Trinbagonians seek better and faster care.

The agricultural sector accounts for a tiny portion of T&T’s overall economy. It contributed an estimated 0.5% of GDP in 2014, according to the UN’s Food and Agriculture Organisation, while agricultural exports contributed just 0.01% of GDP. In labour terms, the sector accounted for 3.5% of total employment in 2013, or some 22,000 jobs, according to the central bank. While this is largely in line with other Caribbean island states, it exposes T&T to a degree of vulnerability in terms of its import bill. To help mitigate this risk, the country has been working to bolster domestic production levels to achieve food security. Though production increases remain limited by structural inefficiencies, weaker oil prices have the potential to reinvigorate non-energy sectors such as agriculture in the years ahead.

This chapter provides an overview of T&T’s tax regime, covering areas of particular interest to investors such as corporate and individual income tax, value-added and Customs tax, as well as tax exemptions, among other aspects. In addition, it features a viewpoint with Angela Lee Loy, Chairman, Aegis Business Solutions, on the tax incentives supporting economic diversification.