Independent senator: Good and bad in budget

Black Immigrant Daily News

The content originally appeared on: Trinidad and Tobago Newsday

File photo: Independent Senator Evans Welch is escorted to the Red House by police.

INDEPENDENT Senator Evans Welch has mixed views on the 2022/2023 budget.

In his contribution to the budget debate in the Senate on Friday, Welch said there were some good and bad measures.

He welcomed the school-to-work apprenticeship allowance as a positive initiative that could see more young people being employed in sustainable jobs.

In his budget presentation on September 26, Finance Minister Colm Imbert said this will encourage more businesses to hire people aged 16-25 for short-term apprenticeship to give them relevant experience and exposure to the world of work.

“Companies will be eligible for an allowance of 150 per cent for all remuneration paid under such an allowance, up to a maximum of five per cent of the company’s total wages and salaries bill for one year.”

To qualify for this allowance, he said, the company’s training programme must be registered with the National Training Agency and the expenditure certified by the company’s auditors. The apprenticeship will be limited to a year, in the first instance.

This measure will take effect on January 1, 2023.

Welch said this is important to give young people hope of finding meaningful work rather than being lured into a life of crime.

He was sceptical as to whether increasing the personal income-tax exemption limit from $84,000 to $90,000 a year would be beneficial.

Imbert said this meant all individuals earning $7,500 a month or less will now be exempt from income tax, and it would put additional disposable income of $1,500 a year into the pockets of over 300,000 people.

Welch said his calculations estimated that these 300,000 people could each get only $135 extra per month, which could be wiped out by higher food and fuel prices.

Recalling that he paid $300 to fill his car with gas last year, Welch said that rose to $440 after the budget.

While he does not agree the fuel subsidy is “a black hole” consuming much-needed revenue, Welch said a more measured and gradual approach to its removal was needed, so as not to negatively affect the most vulnerable in society.

Welch questioned the increase in the VAT (Value Added Tax) registration threshold from $500,000 to $600,000 “to provide relief and support in the payment of VAT. “

Imbert said this measure will positively affect the growth and development of small and medium enterprises by helping them make their VAT payments in a timely manner.

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