{"id":266189,"date":"2026-02-04T07:41:35","date_gmt":"2026-02-04T11:41:35","guid":{"rendered":"https:\/\/antiguanewsroom.com\/?p=266189"},"modified":"2026-02-04T07:41:43","modified_gmt":"2026-02-04T11:41:43","slug":"imf-says-antigua-and-barbuda-still-lags-eccu-peers-in-tax-collection","status":"publish","type":"post","link":"https:\/\/antiguanewsroom.com\/imf-says-antigua-and-barbuda-still-lags-eccu-peers-in-tax-collection\/","title":{"rendered":"IMF Says Antigua and Barbuda Still Lags ECCU Peers in Tax Collection"},"content":{"rendered":"
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The International Monetary Fund says Antigua and Barbuda continues to trail its Eastern Caribbean Currency Union (ECCU) peers in tax collection, warning that structural weaknesses in the revenue system underscore the urgency of further reforms.<\/p>

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In a concluding statement following its Article IV consultation mission, IMF staff said that while tax revenues have improved in recent years, collections remain well below regional comparators<\/strong> and short of the authorities\u2019 own medium-term targets.<\/p>\n\n\n\n

The Fund noted that tax revenue reached just over 18 percent of gross domestic product in 2025, but said this figure was boosted in part by one-off collections of tax arrears<\/strong>, masking underlying weaknesses in revenue performance. By comparison, several ECCU peers consistently collect a higher share of revenue relative to the size of their economies.<\/p>

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IMF staff said the revenue-to-GDP gap<\/strong> reflects longstanding structural issues, including narrow tax bases, exemptions, inefficiencies in administration and weaknesses in compliance. These factors, the Fund warned, limit the government\u2019s ability to build fiscal buffers, reduce financing pressures and place public debt on a firmer downward path.<\/p>

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The IMF stressed that reform urgency remains high<\/strong>, particularly as Antigua and Barbuda faces ongoing spending needs related to infrastructure, climate resilience and social programs. It said progress toward the government\u2019s stated objective of raising tax revenues to about 20 percent of GDP will require sustained reforms rather than reliance on temporary or exceptional measures.<\/p>\n\n\n\n

Key priorities identified by the Fund include broadening the tax base, strengthening compliance, modernizing tax administration systems and reducing exemptions, alongside customs reforms aimed at improving efficiency and competitiveness.<\/p>

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Without faster and more durable progress on revenue mobilization, the IMF cautioned, fiscal targets could become harder to achieve, leaving the country more exposed to economic shocks and external risks.<\/p>\n

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The International Monetary Fund says Antigua and Barbuda continues to trail its Eastern Caribbean Currency Union (ECCU) peers in tax collection, warning that structural weaknesses in the revenue system underscore the urgency of further reforms. 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