Antigua and Barbuda Contemplates 2% Sales Tax Hike to Fulfill Public Servants’ Salary Increase

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Residents have been notified of a potential 2% increase in the Antigua and Barbuda Sales Tax (ABST) as the government grapples with heightened financial obligations, primarily to meet the salary increments for public servants.

Currently standing at 15%, the ABST may undergo an adjustment, pending a final decision.

Finance Minister and Prime Minister Gaston Browne cautioned the public to brace for a potential rise, emphasizing the necessity of addressing fiscal demands.

Explaining the imperative, Browne highlighted the government’s commitment to a 14% salary increase for public servants, estimating a cost of approximately 40 million dollars.

This potential ABST adjustment aligns with the government’s strategy to fulfill financial commitments, including loans for the expansion of the University of the West Indies, funding for road and infrastructure enhancements, and additional borrowings to cover operational expenses.

While the decision remains pending, Browne affirmed the government’s consideration of this measure in navigating its financial responsibilities.

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14 COMMENTS

  1. A most retrogressive tax system is what the ABLP has imposed on Antigua and Barbuda. By the removal of the direct income tax, the goverment is forced to raise the ABST, in which people with lower incomes pay a higher proportion of their ncome in taxes, compared to higher income earners.

    Do not be fooled by the excuse that this is pay for the proposed increase to civil servants. We all know that the Goverment is in financial crises, jnable to pay suppliers, pensilns and gratuities, maintain govt buildings etc. Not to mention the misuse of state resources for their political survival. The PM has already complained that our current tax/GDP ratio falls below the other OECS countries. Their inept fiscal stewardship will continue to result in giveaways and concessions for the rich and higher taxes imposed on the backs of the poor.

  2. How about he contemplate curbing all the stupid spending and blatant corruption? How about putting a break on the giveaway tax concession for the wealthy? How about tackling compliance and closing the gap in collections by IRD? Apparently those options are much too hard for him to consider, so instead he will just burden the poor with a tax increase that will drive the already high cost of living thru the roof. A genius move

  3. Lord they should have a edit button..I wrote..didnt you hear dollar barrel cost gone up and predictive text changed it . Apologies Anonymous

  4. Inflation has murdered Antiguans with price hikes for the last 2 years and now Gaston Browne is going to finish the job and bury us in the cemetery with an ABST tax increase. ABST hits the poor man the hardest.

  5. I guess when the ALP politicians say “NO NEW TAXES” and we swallow that and sit comfortably believing maybe we just have to deal with the rising cost of goods while convincing ourselves that the inflation is a result of rising prices globally. Bear in mind the ALP politicians never said “NO INCREASE IN EXISTING TAXES” so in the case of the impending additional 2% in the ABST we cannot/should not cry foul and claim we were duped. Since Antigua and Barbuda has the fastest growing economy in the OECS and we are such an economic powerhouse and things are going so well why the already burdened ‘grassroots’ people have to carry this additional burden so that he can give public servants a salary increase? In my humble opinion what is needed to stem some of the borrowing and ease the squeeze on the overtaxed Antiguans and Barbuda is to re-intriduce income tax so that the people making big money can pay their fair share of taxes and let the people making pettycash wages breathe a little.
    When we, the indigenous Antiguans and Barbudans sit and reflect on the state of affairs in our beloved islands we can only conclude that we are fast track on a backward slide to conditions and standard of living that was evident in the 1950’s and earlier. Our islands are grossly overpopulated, basic goods are becoming scarce, those that are available are almost out of most people’s reach financially and we are losing our identity and culture. From my view point the only thing we have in abundance are motor vehicles and the worst roads in history, criminal activities and lazy nonchalant law enforcement.
    WE NEED A CHANGE IN THE MANAGEMENT OF OUR TWIN ISLAND STATE

  6. Plenty more tax in are you nen nen.

    Are you na see the country bruk and the donkey leader a try not to go to the I.M.F?

    Drive tax in dem tail donkey leader. They like it so.

  7. This economic dunce thinks that we are all as dense as his Labourites and Gastonites whom he calls society’s low. So he collects an additional 2% to pay a 14% civil servants raise. Something stinks here. Why is Gaston Browne all of a sudden concerned about Antiguans and Barbudans? I don’t believe anything this idiot says.
    Antiguans and Barbudans, be warned. He did nothing to help during covid,but hurriedly mandated poisons, denying these same civil servants two months wages. When every island helped their citizens, and continue to help, he has done nothing. Cost of living, gas prices, electricity prices have all remained high,even the cost of crude oil fell.
    He refuses to aggressively pursue the rich for taxes and continue to give ridiculous concessions to them.
    The solution is simple. Get rid of Gaston Browne and his entire cabinet. Their incompetence is destroying our country.

  8. He,the Genius was going to borrow Antigua and Barbuda out of Debt.Now,he is going to TAX ANTIGUA AND BARBUDA TO DEATH.HEAVEN HELP OUT ALL.

  9. To repeat what others have said…a helpful solution would be to STOP all the stealing consisting of commissions, dirty deals and land acquirements. To “acquire” seven and up to ten digits out of a tiny country is an abomination! Simply put it is stealing from the people. Since we are very much overpopulated STOP the “free movement” along with the migrants from all over. Antigua obviously cannot cope with all these people and the crime is getting out of control. Right now, Antigua has become an unkempt mess which includes the coastline and dead marine life. Tourists have many other choices of clean well managed destinations to choose from where the environment (land and sea) is alive and flourishing and they won’t get robbed, raped or shot by an illegal gun. Employing excess people in the civil service to, in all too many cases, do absolutely nothing is and was a ludicrous ABLP buy votes brain wave. The UPP made an excellent effort to reduce the civil service which gave a much-needed reduction on the wage bills. Financial stupidity came along and effectively ruined that commendable effort.
    Adding 2% to the sales tax will most likely cost the country in the long run because the poor will end up eating unhealthy crap which will put more of a strain on the medical facilities.
    The Treasury would burst at the seams if at least some of the last four decades of stolen monies could be returned to the coffers. Antigua people need to demand that integrity, sense and intelligence run this country for this country and not for themselves and personal enrichment.

  10. This man cannot borrow from anyone so he will burden the poor people with more taxes. Lol.
    The reason why no one will lend him any more money, it’s because he is not running the government finances at a surplus and doesn’t have any calateral to show for his borrowing.
    This government is broke, dead broke, and smart people knows it.

  11. Salary increase where am still getting paid the same amount, plus now am increase in tax because we as the people have to pay for the loan the government take, live in Antigua gets hard every day.

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