Maroc - NEWSDAY.CO.TT - A la Une - 01/Jan 05:54

Tunapuna Chamber: Customs hike will squeeze SMEs, consumers

THE DOUBLING of customs fees, published in the gazette on Christmas Day, is cause for concern for the Greater Tunapuna Chamber of Industry and Commerce (GTCIC) which warns that these changes will weigh heavily on small businesses and, in time, reach the pockets of shoppers. From January 1, the customs declaration fee will double from $40 to $80 per package under Legal Notice 472. Container examination charges, outlined in Legal Notice 473, have also been increased from $375 to $750, and from $525 to $1,050, depending on size. Although these changes were revealed in the 2025/26 national budget and gazetted on December 25, the chamber stressed that advance notice does not translate into financial readiness for businesses. “Budget announcements do not automatically equate to financial preparedness,” the Ramon Gregorio-headed GTCIC said in a prepared statement, responding to questions from Business Day. “Many SMEs operate with tight margins, limited cash flow flexibility, and pre‑existing supply contracts. The ability to absorb or quickly adjust to higher customs‑related costs is constrained, especially in an already challenging economic environment.” The chamber expressed concern about the ripple effect, as small and medium‑sized enterprises (SME) already face freight volatility, forex shortages, higher financing costs and inflation. Adding doubled customs fees to that list, the chamber cautions, risks slowing business activity, delaying expansion plans and dampening confidence among smaller operators. The chamber said it anticipates some of these costs will inevitably be passed on to consumers, particularly within the retail and distribution sectors. The chamber also said it was worried about the impact on e‑commerce and courier‑based businesses. Doubling the declaration fee to $80, it said, disproportionately affects SMEs that rely on minor but frequent imports. “For these businesses, the increased fee structure places added strain on digital business models and emerging entrepreneurs, potentially discouraging innovation and online trade,” it said. The chamber said while it is not dismissing government’s revenue needs and acknowledges that cost-recovery measures are part of fiscal management, it insists this must be balanced against business sustainability and economic growth. “Without complementary reforms and trade‑facilitation initiatives, these increased fees could place additional strain on SMEs and weaken overall competitiveness,” it warns. Instead of simply raising charges, the chamber is calling for tangible improvements in customs operations. The GTCIC called for faster turnaround times, streamlined and fully digitised clearance processes and ongoing engagement with the business community to assess the real‑world impact of the changes. Relief mechanisms or differentiated fee structures for SMEs and low‑value shipments should also be considered, it said. While the finance ministry has projected $1 billion in additional revenue from the new customs fees and other measures, the chamber said SMEs cannot be expected to shoulder this burden without support. On December 25, alongside the customs notice, government published amendments that doubled road traffic fines and raised civil registry charges for births and deaths. The chamber said the issue is not whether businesses should contribute to national revenue, but whether the system is designed to keep them viable. “The GTCIC remains committed to constructive dialogue with policy-makers and stands ready to collaborate on solutions that support efficient customs administration while safeguarding business viability and national economic development,” it said. The post Tunapuna Chamber: Customs hike will squeeze SMEs, consumers appeared first on Trinidad and Tobago Newsday.