Trinidad and Tobago modernizes its tax payment ecosystem

Trinidad and Tobago is a Caribbean country located in the southeast of the West Indies with a population of approximately 1.4 million people. The country’s Treasury Department aims to increase accessibility and make it easier for individuals and businesses to meet their tax obligations by supporting key legal, regulatory and change management initiatives for the digitalization of an online tax payment ecosystem in the country.

With the help of CAF Development Bank of Latin America, the Treasury Department recently hired the services of NRD Companies to support these efforts. Trinidad and Tobago is ranked in the “High EDGI Countries” category in the United Nations E-Government Development Index (EGDI), which presents the state of e-government development in member states, and the country’s overall digitalization performance is above average for the Caribbean subregion.

Trinidad and Tobago also ranks as a “high-ranking country” according to the UN Online Services Index (OSI), which measures the use of information and communications technology by governments for the provision of public services at the national level. In addition, the Government of the Republic of Trinidad and Tobago focuses on the “digital first” mindset, and the country’s progress in digitalizing and integrating digital technologies into its public services in recent years has seen a substantial growth in internet use among the population.

However, in terms of electronic payment services, the population is not comfortable with using digital channels to carry out financial operations. According to the Department of Trade and Industry, only 20% of the population makes purchases and/or payments online, despite the fact that 81% of people have a bank account and 20% have a credit card.

“Most monetary transactions in the region continue to require submission of numerous complex documents and long hours of waiting in line at several government offices. Existing practices have a disruptive impact on businesses and individuals, especially those segments of the population less likely to use technology and more socially vulnerable. In addition to providing various channels for making payments, facilitating tax payment procedures will not only improve tax system efficiency, but will also greatly contribute to financial inclusion and fair development at the national level and throughout the Caribbean,” explained the Honorable Colm Imbert, Secretary of the Treasury. Finance.

The project, funded by CAF and the Government of the Republic of Trinidad and Tobago, will include several aspects of great significance for the introduction of online payments in the country’s public sector. During the project, the legislation and regulations governing Trinidad and Tobago’s payments ecosystem will be reviewed and adapted. A detailed assessment of institutions’ needs for online payment methods will be implemented, and detailed recommendations put into effect to ensure the security and resilience of the digital ecosystem required to support online payment methods. The tax payment system will be introduced. Cultural change in the behavior of institutions, individuals and companies will also be promoted, encouraging them to take advantage of the new possibilities offered by the introduction of innovative payment methods.

“CAF is committed to improving the quality of life for all the people of Latin America and the Caribbean, and digitalization opens up endless opportunities to implement this strategic objective. We believe in the potential of Trinidad and Tobago to take advantage of the possibilities offered by digital tools and solutions. CAF recently approved a loan of USD 120 million to boost the digital transformation of the country. This project is one of the important steps in its digital transformation, which will allow the public sector to be more efficient and act as a catalyst for diversification and economic growth,” said Gianpiero Leoncini, CAF representative in Trinidad and Tobago.

“We are excited and honored to have been chosen by the Government of Trinidad and Tobago to provide technical consulting services to support the Ministry of Finance and other institutions in developing an online payment ecosystem for tax collection in the country. Through this consultation, we will support the government’s efforts to establish a unified and standardized approach to online payments in the public sector, ensuring both the best user experience and payment security. Our company has been involved in numerous successful digital government transformation projects in the region, including in Belize, Guyana, Grenada, Saint Lucia, Sint Maarten and Saint Vincent and the Grenadines. Our global experience, and specifically in the Caribbean region, demonstrates that the implementation of digital innovations has brought significant improvements to government service delivery and will have a significant impact in facilitating business negotiations and increasing financial security, inclusion and overall quality of life,” said Mindaugas Glodas, CEO of NRD Companies.