Antigua to roll out tax relief and wage increases amid rising costs

Prime Minister Gaston Browne has announced two rounds of sales tax relief this year, as part of measures aimed at easing the cost of living.

The government will remove ABST on food and school supplies in April and again in August, aligning the reductions with periods of increased household spending, including back-to-school preparations.

Mr Browne said the initiative, approved by Cabinet, stems from a policy decision taken earlier this year to provide targeted tax cuts. Plans for broader relief were scaled back following advice from the International Monetary Fund, which warned of potential impacts on government revenue.

The tax measures come alongside a five percent interim salary increase for public servants, due to take effect at the end of March, while wider wage negotiations continue.

The government has also raised the national minimum wage from about EC$9.00 to EC$11.50 per hour, with a longer-term goal of reaching EC$13.00 within two to three years.

Mr Browne said the policies are intended to cushion the effects of rising global prices, particularly for fuel and food, and noted that the government has absorbed recent increases in petroleum costs to keep local prices stable.

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