Excise duty on alcohol in Trinidad: 2025 hike and 2027 cut

Excise duty is the tax charged on alcohol made or sold in Trinidad and Tobago, and it is the main reason drink prices jump after a budget. In October 2025 the government doubled excise on alcohol overnight. The FY2027 budget now proposes a 25% cut from 1 January 2027, which would bring rates down but still leave them well above where they were before.

Here is how the tax works, what changed, and what it means if you are budgeting for a wedding, fete or office party.

Note: This is general information, not legal or tax advice. Budget measures take effect through legal orders, so confirm final rates with the Customs and Excise Division of the Ministry of Finance.

What is excise duty on alcohol?

Alcohol in T&T is taxed in layers:

• Excise duty: charged on alcoholic drinks by type and strength. Rum and other spirits are taxed per litre of pure alcohol, so a stronger bottle pays more.
• Customs duty: charged on imported alcohol at the border. Local rum does not pay this, imported vodka and whisky do.
• VAT: the standard rate is 12.5% on most goods.

Then the distributor, retailer and bar each add their margin. That is why a small change in duty can move the price you pay by more than the tax itself.

What changed in the October 2025 budget?

The 2025/2026 budget was read on 13 October 2025. The same day, Legal Notice No. 376 increased excise on beer, malt beverages and rum. A second order on 21 October 2025 (Legal Notice No. 384) increased or set rates for stout, sparkling wine, whisky, brandy, gin, vodka and liqueurs.

What happened to shelf prices

Producers moved within days:

• Carib Brewery set suggested retail prices of TT$13 for Carib and Stag (from around TT$10 to TT$11), TT$15 for Royal Extra Stout and TT$22 for Heineken and Guinness.
• Angostura adjusted its local rum prices from 17 October 2025. Angostura 1919 went from TT$299.99 to TT$349.99.
• Angostura later ran Christmas prices on its rums until 31 December 2025.

By the first quarter of 2026, Angostura reported that excise taxes made up 41% of its total production costs, up from 29% a year earlier. Its local sales still grew. The bar owners' association told the Guardian it had not seen a big drop in purchases, but that some customers were switching to cheaper brands.

What does the FY2027 budget propose?

The FY2027 budget was read on 12 October 2026. According to EY's budget review, the Minister proposes to reduce excise rates on alcoholic beverages by 25% from 1 January 2027:

The budget also proposes moving customs duty on imported alcohol from a fixed amount per volume to an ad valorem (percentage of value) system from 1 January 2027. No rates were given in the budget statement, and products with preferential treatment under trade agreements are excluded from the new structure.

What the numbers mean per bottle

Spirit excise is charged per litre of pure alcohol. A 750 ml bottle at 40% contains 0.3 litres of pure alcohol, so the excise inside it works out like this:

So a bottle of local rum would carry about TT$11.89 less excise, and a bottle of imported vodka or whisky about TT$25.21 less, before VAT, customs duty and margins. A 750 ml bottle of sparkling wine would carry TT$39.60 instead of TT$52.80.

Two things stand out. First, even after the cut, local rum excise would be 50% higher than before October 2025 (TT$118.88 against TT$79.25). Second, imported spirits pay more than twice the excise of local rum per litre of alcohol, which is one reason local rum is the best value spirit for a party. Our alcohol prices guide shows current shelf prices.

Are liquor prices going up or down?

For local rum and beer, the direction from 1 January 2027 should be down, if producers and retailers pass on the lower duty. Nothing obliges them to, and they may also be carrying stock bought at the higher rate.

For imported spirits and wine, it is less clear. Excise falls by 25%, but the switch to value-based customs duty means more expensive imports could pay more at the border. EY's budget review also notes that other measures, such as moving some VAT zero-rated items to exempt status, could add business costs that may find their way into prices.

Watch out: Prices quoted before January may be based on the October 2025 rates. If your event is in January or February 2027, ask your supplier whether a price is fixed or will be reviewed after the duty change.

What it means for your event budget

The drinks line is often the biggest single variable in a bar quote. With duty changing on 1 January, a bit of planning helps:

1. Separate service from drinks. Lock in your bar team, equipment and menu now. Treat the drinks as a separate line you confirm later.
2. Choose consignment if you can. Paying only for what is opened means you are not stuck with surplus bought at a higher price. See open bar, cash bar or consignment.
3. Lean on local rum. It has the lowest excise per drink. A good rum punch or two rum cocktails can carry the night.
4. Don't stockpile in December for a February event unless you have a firm price. You could pay pre-cut prices.
5. Recalculate in January. Use our alcohol calculator with fresh prices.
6. Keep the essentials in the budget. Whatever a bottle costs, plan for water, food and a safe ride home for every guest.

For more ways to trim the bill, read 12 ways to save money on event drinks.

Next steps

If you have an event coming up around Christmas, Old Year's or Carnival, request a quote. We reply within 24 hours and can set the drinks up on consignment, so you only pay for what your guests actually open.