{"id":218151,"date":"2024-12-06T01:52:00","date_gmt":"2024-12-06T05:52:00","guid":{"rendered":"https:\/\/antiguanewsroom.com\/?p=218151"},"modified":"2024-12-05T20:55:15","modified_gmt":"2024-12-06T00:55:15","slug":"no-new-taxes-but-authorities-to-focus-on-strengthening-tax-compliance-and-collection","status":"publish","type":"post","link":"https:\/\/antiguanewsroom.com\/no-new-taxes-but-authorities-to-focus-on-strengthening-tax-compliance-and-collection\/","title":{"rendered":"No new taxes but authorities to focus on Strengthening Tax Compliance and Collection"},"content":{"rendered":"
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The Government of Antigua and Barbuda is prioritizing improved tax compliance and collection in 2025 as part of its efforts to bolster revenue and ensure fiscal sustainability. Prime Minister Gaston Browne, during his 2025 Budget presentation, emphasized that while no new taxes will be introduced, this year will be marked as the “Year of Compliance.”<\/p>

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\u201cOur government has always championed a low-tax threshold to boost disposable incomes and stimulate economic growth,\u201d Browne stated. \u201cWhile we will not introduce new taxes, we will insist on compliance with the payment of existing taxes to fund essential services and development projects.\u201d<\/p>\n\n\n\n

In 2024, Antigua and Barbuda saw significant improvements in tax revenue, which is projected to reach $1.19 billion in 2025, equivalent to 18% of GDP. Despite this growth, the Prime Minister pointed out that the nation still falls below the Eastern Caribbean Currency Union (ECCU) average of 25% of GDP for tax revenue, underscoring the need to enhance compliance.<\/p>

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The Antigua and Barbuda Sales Tax (ABST) continues to be a major contributor to government revenue, generating $412.2 million in 2024\u2014a 25% increase over the previous year. However, Browne warned that non-compliance remains a pressing issue. \u201cABST revenue is held in trust and must be remitted to the Consolidated Fund as stipulated by law. Those who continue to manipulate ABST payments will be vigorously pursued and subjected to the applicable legal penalties,\u201d he cautioned.<\/p>

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The government\u2019s strategy for improving tax collection includes modernizing its tax administration systems to make compliance easier for individuals and businesses. This will involve the implementation of digital solutions to streamline the tax payment process, enhance efficiency, and reduce opportunities for evasion. Browne explained, \u201cInvesting in technology is critical to building a fair and effective tax system that supports economic growth while ensuring accountability.\u201d<\/p>\n\n\n\n

Efforts will also focus on raising awareness about the importance of tax compliance and its role in funding public services. The government plans to launch public education campaigns to inform citizens and businesses about their tax obligations and the benefits of timely payments. Browne underscored the collective responsibility of taxpayers, stating, \u201cCompliance is not just a legal duty; it is a shared responsibility that binds us together as a nation.\u201d<\/p>

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Key revenue sources expected to drive collections in 2025 include:<\/p>\n\n\n\n