New tax allowance to bolster cyber security

In a significant move to enhance the cyber security framework of TT, the National Information and Communication Technology Company Ltd (iGovTT), under the Digital Transformation Ministry, launched the Cybersecurity Investment Tax Allowance (CITA) management system on June 12.

This initiative, part of the broader Cybersecurity Tax Administrative System (CySTAMS), was originally announced by Finance Minister in the 2023/2024 national budget.

According to iGovTT, the platform allows businesses to submit proof of their cyber security purchases for validation, enabling them to claim tax credits up to $500,000 from the Inland Revenue Division of the Ministry of Finance.

TT Chamber president Kiran Maharaj, in her address at the launch, emphasised the importance of this initiative for the business community and the nation’s digital future.

"Tax allowances resonate positively with business leaders, particularly in these times of stringent financial management," Maharaj said. "CITA is a commendable effort by the government to incentivise businesses to invest in cybersecurity measures."

She highlighted that CITA aligns perfectly with the recommendations made by the TT Chamber ahead of the 2023-2024 national budget. At that time, the TT Chamber recognised the need for further incentivisation of digital expenditure to propel national digital transformation. This initiative underscores the critical importance of safeguarding the nation's digital infrastructure, a priority consistently highlighted by the chamber.

"Cybercrime poses the biggest threat to small, medium and large businesses, with hacker activity rising substantially over the last two years," Maharaj said, citing a 2022 PwC global report.

Statista reports that between November 2022 and October 2023, over 30,000 cyber crime incidents were detected worldwide, with over 900 involving small companies.

Locally, National Security Minister Fitzgerald Hinds noted 205 successful cyber attacks between 2019 and 2023.

"As we live and work online more than ever before, our security measures must keep pace. We cannot afford to fall behind on the digital front," Maharaj said.

She said the chamber is committed to proactive cybersecurity measures through its Digital Business and Technology Committee. The committee focuses on understanding the impact of cyber security and securing a cyber-resilient business future.

"We advocate for effective cyber security mechanisms – technological, operational and legal – to support the increasing digitisation across both business and public sectors," she explained.

Effective cyber security requires collaboration between the business and public sectors.

"Just as criminal elements band together, we must unite to thwart their efforts. The global enterprise of cybercrime is lucrative, with projections showing it could surge from US$9.22 trillion this year to US$13.82 trillion by 2028. We must work together to strengthen our defences," she added.

The chamber has embraced CITA and encourages all members and the broader business community to invest in cyber security.

"This investment is not only for the protection of individual businesses but for the security of our entire society. It is in our collective interest to nurture and develop a securely interconnected local digital ecosystem where businesses can thrive," Maharaj said. "We are committed to working together to create a safer and more resilient digital landscape that will greatly benefit the national business sector."