It is time for the government of Trinidad and Tobago to remove the corrupt online purchase tax and stop applying value added tax to import tariffs
Corruption includes "unwarranted interference in market operations, such as the use of state power to artificially restrict competition"
This implies that the 7% online purchase tax introduced by Colm Imbert [PNM] to "give local businesses a competitive advantage." is corrupt by definition
In an official press release by The Customs and Excise Division of Trinidad and Tobago, the stated that imports into Trinidad and Tobago are subjected to the following taxes.
The CIF (item cost plus insurance and freight) is calculated and the current exchange rate first applied.
The import duties tariff is applied and charged to this CIF value which can vary from 0-30%
An additional 7% tariff is also applied for online purchases
Value Added Tax (VAT) is applied to the CIF value and the already imposed tariffs.
The effective tax rates on imports therefore becomes 20.4% to 54.1%