Senate approves new duties on alcohol, tobacco products

Kennedy Swaratsingh -

THE Senate on October 29 voted to approve hikes in duties on alcohol and tobacco products, but with the opposition voting against and a majority of independent senators abstaining. The hikes had initially been proposed in the budget presentation by Finance Minister Davendranath Tancoo, and were presented to senators by Planning Minister Kennedy Swaratsingh.

Senators discussed the various hikes together in one debate, but at the end held five separate votes for each type of item plus Caricom tariff considerations.

Senate vice president Kenya Charles in the chair acknowledged senators passing the first motion by popular acclaim, without anyone calling for any division to be taken. This was a motion to confirm the Excise Duty (Tobacco Products) (Amendment) Order, 2025.

For cigarettes, this imposes an excise duty of $10.52 per pack of 20, and a duty of $137.40 per kilogramme for "other manufactured tobacco" and "tobacco substitutes" including water pipe tobacco, as stated in Legal Notice 373 of October 13.

For the other four motions, a division was taken each time for each senator to state his/her position.

The Excise Duty (Alcoholic Beverages) (Amendment) Order, 2025 increases excise duty of 52 cents per litre on malt beverages, $10.28 per litre on beer and $158.50 per litre on rum and other spirits. This was passed by 16 votes for (mostly by 15 government senators), six against (by opposition senators) and eight abstentions (by most independent senators), with Independent Senator Courtney Mc Nish voting for the motion.

The Excise Duty (Tobacco Products)(Amendment) (No. 2) Order, 2025 imposes an excise duty of $72.38 per kilogramme on cigars, cheeroots, ad cigarillos containing tobacco.

McNish and independent senator Josh Drayton voted for the motion, which was passed by 17 votes for, six against and seven abstentions.

The Excise Duty (Alcoholic Beverages) (Amendment) (No. 2) Order, 2025 raises duty on several strong alcoholic beverages.

Stout will attract an excise duty of $10.28 per litre, sparkling wine $70.40 per litre, and items like vodka, liqueur and cordials $336.20 per litre.

While Mc Nish voted yes, Drayton voted no, with the motion passed by 16 votes for, seven against and seven abstentions.

The Senate by a split vote also passed the Customs (Common External Tariff)(Amendment) Order, 2025, that raises the tariff on several items imported into the Caricom common market from abroad.

These tariffs include beer ($21.08 per litre); sparkling wine ($210.92 per litre); plus brandy, vodka, liqueurs and cordials (all at $184.56 per litre), plus hikes for tobacco products.

This motion was passed by 19 votes for, six against, five abstentions. Those independent senators voting for the motion were Dr Marlene Attzs, Dr Desiree Murray, McNish and Drayton.