Trinidad & Tobago has sharply raised customs duties on tobacco and alcohol products as part of a fiscal plan to generate an extra TT$1 billion (US$1547.5 billion) in revenue, aiming to strengthen the country’s finances.

Finance Minister Davendranath Tancoo announced that effective immediately, cigarette duties will increase from $5.26 to $10.52 per 20-pack. Spirits and alcohol taxes will double—from $79.25 to $158.50 per percent of alcohol content—and beer duties will rise from $5.14 to $10.28 by gravity. The increases, he said, will contribute about 80 percent of next year’s projected revenue growth.

Additionally, starting January 1, 2026, the customs declaration fee will increase from $40 to $80, and the container processing fee will double from $525 to $1,050. Luxury electric vehicles valued over $400,000 will be subject to a 10 percent duty, 12.5 percent VAT, and a new tiered motor vehicle tax. A 5 percent import tax on single-use plastics is also being introduced.

Tancoo said the government intends to “curb abuse of concessions” on EVs and align duties with revenue needs and environmental objectives.

The fiscal measures are framed as part of the 2026 budget and broader economic plan. Local critics warn that such steep hikes could fuel illicit trade, hurt local producers, and increase consumer costs.