Prime Minister Gaston Browne will be pressing ahead with his government’s plan to increase the Antigua and Barbuda Sales Tax (ABST) by two per cent.
Browne, who is also the finance minister, will present the tax increase during his 2023-2024 budget speech on December 15.
The increase will take the ABST rate from 15 to 17 per cent.
The government previously said increasing ABST will help fund growing expenditure commitments such as the 14 per cent increase to public service salaries.
During yesterday’s Post-Cabinet Press Briefing, Information Minister Melford Nicholas said officials at the Finance Ministry deliberated on multiple ways to close the expenditure gap to ensure government spending is sustainable and increasing the ABST was a prime suggestion.
He said the tax increase is considered appropriate at this time and the ministry is looking at how it will be implemented.
“We’re still thinking that it is appropriate and the Ministry of Finance officials have been asked to look at a phased implementation of these measures and I guess more will come over the next two weeks,” he said.
Nicholas is confident that the two percent increase will have little to no impact on the cost of basic food items since many of them are zero-rated.
“As indicated by the prime minister…the government intends to protect the most poor and vulnerable,” he commented.
The list of zero-rated items includes flour, rice, chicken, vegetables and baby formula.
Nicholas added that citizens should not see the tax increase as a sign that the country’s economy is collapsing but rather that the government is looking to make Antigua and Barbuda’s fiscal situation better.
Advertise with the mоѕt vіѕіtеd nеwѕ ѕіtе іn Antigua!
We offer fully customizable and flexible digital marketing packages.
Contact us at [email protected]
Gaston is handing UPP its Election 2028 (or earlier) campaign slogan… Reduce ABST
So crime is increasing and they want to increase taxes too? Even more crime will happen in this place.
Let’s pray that it doesn’t. We are living in scary times. You can’t even leave your doors unlocked during the day nor lovk it at night and feel safe. Our officers need to do more patrolling.
Gaston Browne has obviously not read anything about the fall of Rome, which was aggravated by high taxation. The proposed tax may not apply to food, but it will certainly apply to everything else. The rich can absorb the tax increase, but the lower socioeconomic classes will take a disproportionate hit. Increasing tourism is the key to increasing income, not an increase in taxes. Driving down the general population does not make Antigua a more desirable place for tourists to visit. Increased taxes will increase crime by those at the bottom of society. The government wants an increase in taxes but fails to show details of the budget. Don’t be lead around like sheep!
I know that the P.M is just joking. 😁😁😁😁L.O.L.He must be.
Comments are closed.