Antigua and Barbuda Government Insists Vehicle License Fee Hike Is ‘User Fee’, Not a Tax

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Lionel-Max-Hurst

Government of Antigua and Barbuda Defends Vehicle License Fee Increase as ‘User Fee’

The government of Antigua and Barbuda has reiterated its position on the proposed increase in vehicle license fees, describing it as a user fee intended to fund road repairs. The issue was discussed at the latest Cabinet meeting, with officials maintaining that the additional revenue will be dedicated solely to infrastructure improvements.

At the Post-Cabinet Press Briefing, Chief of Staff Lionel Hurst addressed concerns about the increase, stating, “This is not a tax but a user fee for those who drive on our roads and expect them to be properly maintained.”

The opposition has pushed back against the increase, arguing that greater transparency and accountability measures should be in place to ensure the funds are allocated as promised. Some critics have questioned whether the revenue will be strictly used for road repairs or diverted elsewhere.

Hurst pointed to existing models, such as the Board of Education and Social Security, where funds are directly managed for specific purposes. “We have structures in place to ensure that revenues go where they are meant to, just as we do with the Board of Education, Social Security, and Medical Benefits Scheme,” he explained.

The matter is expected to be debated in Parliament, where the opposition has indicated it will raise concerns about the timing and necessity of the increase. While Cabinet members reportedly reached a consensus, Hurst acknowledged that parliamentary discussions could lead to further adjustments before final approval.

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16 COMMENTS

  1. Again this ALBP Administration twist and turn trying to escape the criticism of the 40% increase in vehicular registration fees.

    When it’s not a bank loan it’s bond financing all of which will get eaten away in interest charges, bond underwriting fees among other costs. Chet Green says it’s Special Purpose Vehicle (SPV)

    Now it’s being said it’s a user fee.

    Unfortunately their is no credible media or political commentary from the Opposition Parties to explain what’s going on.

    User Fees are not fix fees. User fees are that you pay based on your usage
    or you pay as you go.

    A dedicated tax on gasoline is a user fee. It would raise more money for road construction; and as a dedicated funds keep the roads in good condition.

    If a person don’t use or seldom use their vehicle the fee they pay is small. The amount one pay is based ones their usage.

    Under the system being proposed; an individual who is in Antigua for 2-4 months per year; and uses his or her vehicle twice a week, will be paying the same 40% increase increase even though their vehicle is use less than 12% of the everyday driver.

    It’s a tax by any measure , not a user fee. Get it right; Mr. Spin Doctor.

  2. It is a matter of semantics and somewhat splitting hairs, but yes from an economic and legal perspective you are correct. The vehicle licensing fees increase is a USER FEE and not a TAX. It is a user fee because it is discretionary and will only be paid by those who own vehicles. On the contrary a tax is mandatory and do not go toward a specific service or facility that someone benefits from as opposed to the user fee that goes to a specific service to benefit the payers of the user fee. However, to the man in the street there is no fundamental difference. It is tantamount to 6 and half a dozen.

  3. @CountryMan Abroad the vehicle licensing fee is not based on usage but on ownership of a vehicle. Once you own a vehicle you pay it when you are licensing your vehicle at the Transport Board.

  4. All of you joining the spin doctors continue, I don’t want to pay nothing. Not until I see the damn roads fix . Fix the roads with all the money you all get from England, Canada, China and everywhere else. Weh them money garn????
    Fix the roads them you all can tax yes it is a damn big TAX. Some of you all that supports this Government are so stupid you all will sell your mothers for political party. Horrible set of people. You all love misery and hardship. All when you all hungry you all jumping up behind political party. NONSENSE!

  5. @ Mr. Tabor,
    I disagree you, but there are bigger fishes to fry beyond than the 40% increase arguments to the taxes and capital budgeting policies.
    We and left to argue the merits and definition and meaning of the type of tax
    for there are no media of substance to educate the population.
    Me and you now compete with algorithmic bots in the comments section, and that’s troubling.

  6. Ambassador Max Hurst was in DC and New York when all the money was being drained from Social Security, and Medical Benefits Scheme.
    It’s an insult to the many individuals who were not able to get their Social Security benefits on time or not at all.
    It’s a lesson for those who are aware of the issues surrounding The Medical Benefits Scheme where money was drained out to cover Government expenses.
    Is Max Hurst being disingenuous, or has he forgotten, and I doubt it. Or so he think the Antigua and Barbuda public is so stupid ?

  7. @Charles Tabor, Sorry, your analogy sounds very twisted.

    This tax will affect all vehicle owners and could even affect bus riders if the buses decide to fight for an increase.

    I believe people are asking for transparency. How much does transport board collect now and how much is spent on infrastructure? Based on the number and type of vehicles, how much money would be raised and how much will be needed to service the loan? How many roads will be fixed within the next 3 years? How much will it cost to maintain the roads after they are fixed? Will this new tax/user fee be in excess after the loan payment is complete and will it be lowered? Can we hold the government accountable for damages to our vehicles if the roads aren’t fixed within 3 years?

    Personally, I would not have an issue paying the increase if the roads are significantly improved. I do believe the PM wants to get it done because he wants our image uplifted. But the younger population are not as loyal to parties, they want more action.

  8. This administration might soon charge a user fee for shitting too often, don’t rule anything out with these vampires that we put in office

  9. I lived in Massachusetts for 26 years. I paid to license, inspected my cars.I had to pay an additional fee for each car known as an excise tax. They get away with that by saying it is for using the roads. That was such bull crap.I left Taxachusetts to a place. Where I do not have those ridiculous taxes in disguise.

  10. Another cost to the consumers without consulting the people of Antigua and Barbuda. You can call it whatever pleases you. Have this government at any given time refunded a portion of the people drivers license cost, FOR THE BAD ROADS WE DRIVE ON? OR FOR THE REPAIRS OF OUR CAR SHOCKS, OUR ALIGNMENT, OUR PUNCTURES? NO
    No matter what you call the the new taxes and for its use, UNLESS THE DRAINAGE ARE PROPERLY FIX TO ELIMINATE WATER RUNNING BACK ONTO THE ROADS , THE ROADS WILL ALWAYS BE IN THAT BAD CONDITION.AND THE PROBLEM WILL STILL NOT BE SOLVED.
    Mr Minister please do not try to make the people of Antigua and Barbuda look as though we are all uneducated and have no common sense. COME UP WITH A BETTER SCHEME TO GET OUR MONEY .

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