Government Examines Revenue Framework For Cross-Border Energy Sector
Government is working on a new fiscal policy to govern cross-border gas coming into Trinidad and Tobago, including how it is taxed, regulated, and how the country earns revenue from it.
This was revealed by Minister of Finance Davendranath Tancoo as he responded to an oral question in the Lower House on Wednesday.
« While the country was being told that cross border gas was on the way, the fiscal measures to protect the Treasury remained unfinished. While the population was being given promises, the hard work of settling how Trinidad and Tobago would earn revenue had not been completed. Mr. Speaker, we are establishing a new fiscal review committee which will examine the full gas value chain. »
Minister Tancoo outlined the elements of the value chain—from production and transportation to processing, distribution, and revenue generation, – to Members of the House of Representatives as he detailed the new fiscal measures.
« That includes production outside of Trinidad and Tobago, transportation across maritime boundaries, entry into this country’s jurisdiction, processing, liquefaction, industrial use and export. Along that value chain, Mr. Speaker, the committee will examine transport tariffs for the use of pipelines, processing tariffs for the use of offshore and related infrastructure and a possible cross border access fee to recognize the value of hydrocarbons entering Trinidad and Tobago’s jurisdiction and using the country’s energy platform. »
