{"id":123197,"date":"2021-01-28T11:51:39","date_gmt":"2021-01-28T15:51:39","guid":{"rendered":"https:\/\/antiguanewsroom.com\/?p=123197"},"modified":"2021-01-28T11:51:39","modified_gmt":"2021-01-28T15:51:39","slug":"government-announces-plans-to-strengthen-its-fiscal-resilience","status":"publish","type":"post","link":"https:\/\/antiguanewsroom.com\/government-announces-plans-to-strengthen-its-fiscal-resilience\/","title":{"rendered":"Government announces plans to strengthen its fiscal resilience"},"content":{"rendered":"
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The government of Antigua and Barbuda has developed a comprehensive fiscal strategy document designed to strengthen public finances over the medium term.<\/p>\n

\n

This announcement was made by Prime Minister the Hon. Gaston Browne during the presentation of the 2021 Budget to the House of Representatives on Thursday.\u00a0 He stated that fiscal strategy focuses on enhancing revenue performance, increasing efficiency in public spending, securing debt sustainability, and positioning the Government to meet its obligations in a more timely and predictable manner.<\/p>\n

\n

Key fiscal targets include:<\/p>

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    \n
  1. Primary surplus between 0.5% and 1% of GDP by 2023<\/li>\n
  2. Overall deficit less than 1.5% of GDP by 2024<\/li>\n<\/ol>\n

    iii.\u00a0\u00a0\u00a0\u00a0\u00a0 Wages and salaries accounting for not more than 9% of GDP by 2025<\/p>\n

      \n
    1. Tax to GDP to increase to at least 18% by 2023 and be maintained at a minimum of 20% over the medium-term<\/li>\n
    2. Debt to GDP ratio to fall below 70% by 2030<\/li>\n<\/ol>\n

      \n

      He said that while Antigua and Barbuda\u2019s economy is the second largest in the Eastern Caribbean Currency Union, it has the lowest GDP ratio at 16 per cent.\u00a0 He said that this is clearly a lop-sided system and it cannot continue.<\/p>\n

      \n

      \u201cThe practice of tax avoidance and tax evasion must and will be addressed.<\/p>\n

      It robs the majority of people of benefits they are entitled to enjoy, while a few gain greater individual prosperity.\u00a0 It is not right; it is not just; and it cannot continue.\u00a0 We have devised a number of policy interventions, that will stem the haemorrhaging of revenues through under-payment of a range of taxes,\u201d he said<\/p>\n

      \n

      The country\u2019s leader announced an end end to tax exemptions and duty-free waivers for anything that is not firmly linked to provisions under the law.\u00a0 He said that revenues from property taxes will be improved by increasing compliance from less than 50% to 70% in 2021 and up to 80% by 2025.\u00a0 Tax audits and improved tax administration, will cause a 15% increase in compliance for corporate income tax and unincorporated business tax by 2023.<\/p>\n

      \n

      \u201cThe decision has been made to gradually reduce total exemptions, to no more than 25% of potential revenue.\u00a0 The Revenue Recovery Charge Act (RRC) will be amended in the first quarter of 2021, to limit the waiver of the 10% charge.\u00a0\u00a0 The House will recall that this measure was planned for 2020.\u00a0 It was delayed due to the pandemic,\u201d he said.<\/p>\n

      \n

      It was also announced that from March 2021, RRC exemptions will only apply in a few cases, including for current exemptions in the law for agriculture and fisheries inputs and equipment; medicines and pharmaceutical supplies; and entities with which the Government of Antigua and Barbuda has International Assistance Agreements.<\/p>\n

      \n

      PM Browne however stated that\u00a0 while the law will maintain some allowance for waivers in support of business activity and major investment, such waivers will not exceed 50% of the applicable charge.<\/p>\n

      \n

      \u201cFurther, with effect from February 1, 2021, where the CIF value of imports is $10,000.00 or less, no exemption will be granted. The Tourism Accommodation Levy (TAL) will also be implemented in 2021. This measure was also planned for 2020 but had to be delayed.\u00a0\u00a0 It will now be instituted on May 1, 2021 and will fund the Climate Resilience and Development Fund,\u201d PM Browne said.<\/p>\n

      \n

      This will be a special fund whose purpose is to finance projects and programmes that will build climate resilience, provide a fiscal buffer for public finances in times of natural disasters and economic shocks, and support development of our country.\u00a0\u00a0 The TAL along with a portion of the additional revenues yielded from the RRC, will be deposited to the Climate Resilience and Development Fund.<\/p>\n

      \n

      The TAL will be applied as follows:<\/p>\n

        \n
      1. US$3 per night per guest for all room rates that are US$150 or less; and<\/li>\n
      2. US$5 per night per guest for all rooms that are over US$150.<\/li>\n<\/ol>\n

        It is applicable to tourism accommodations including hotels, guest houses, apartments, AirBnB rentals, and villas.<\/p>\n

        \n

        The country\u2019s leader also announced that his Government is considering amending the ABST legislation, to allow for the application of the ABST to online purchases, to include Amazon. The details of this initiative, he said, will be declared when the methodology for applying ABST is finalised.<\/p>\n

        \n

        The fiscal strategy also includes policies that will help to improve Government\u2019s delivery of value for money, and ensure that Government spending on general operations, does not exceed the revenue generated on an annual basis.<\/p>\n

        \n

        \u201cSome of the interventions include bringing the recently gazetted Procurement Administration Act into force by June 1st<\/sup>, 2021 along with accompanying procurement regulations;\u00a0 maintain the wage freeze and continue to limit hiring except in cases where hiring is necessary; to achieve the objectives of the Government\u2019s fiscal and growth strategy, or to deliver essential services; and reduce the rates now being paid to rent office space and equipment, as is being done all over the world as revenues rapidly decline,\u201d PM Browne stated.<\/p>\n

        \n

        The government believes that these interventions will ensure that the tax yield does not fall below 20% of GDP \u2013 even then, it will be lower than in other Eastern Caribbean countries.<\/p>\n

        \"\"<\/a><\/div>","protected":false},"excerpt":{"rendered":"

        The government of Antigua and Barbuda has developed a comprehensive fiscal strategy document designed to strengthen public finances over the medium term. This announcement was made by Prime Minister the Hon. Gaston Browne during the presentation of the 2021 Budget to the House of Representatives on Thursday.\u00a0 He stated that fiscal strategy focuses on enhancing […]<\/p>\n","protected":false},"author":3,"featured_media":123198,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[118,119,117,116,107,88,102,94,96,91,90,99,92,114,115,98,108,106,104,109,95,105,110,112,113,111,101,103,97],"class_list":["post-123197","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-268-antigua","tag-268-antigua-barbuda","tag-268-antigua-today","tag-268-today","tag-advertise-in-antigua","tag-antigua","tag-antigua-barbuda","tag-antigua-and-barbuda","tag-antigua-breaking-news","tag-antigua-caribbean","tag-antigua-crime","tag-antigua-economy-news","tag-antigua-news","tag-antigua-news-rooom","tag-antigua-observer","tag-antigua-politics","tag-antiguan-news","tag-barbuda","tag-barbuda-news","tag-barbudan-news","tag-breaking-news-antigua","tag-news","tag-news-antigua","tag-news-antigua-barbuda","tag-news-antigua-and-barbuda","tag-news-barbuda","tag-news-in-antigua","tag-news-in-barbuda","tag-tourism-news"],"yoast_head":"\nGovernment announces plans to strengthen its fiscal resilience - Antigua News Room<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/antiguanewsroom.com\/government-announces-plans-to-strengthen-its-fiscal-resilience\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Government announces plans to strengthen its fiscal resilience\" \/>\n<meta property=\"og:description\" content=\"The government of Antigua and Barbuda has developed a comprehensive fiscal strategy document designed to strengthen public finances over the medium term. 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