As the government tries to capture more revenue out of the tourism sector, the Antigua & Barbuda sales tax (ABST) has increased for all short-term stays at Airbnbs and hotels in Antigua and Barbuda by one percent.
According to Deputy Commissioner of Inland Revenue Department (IRD), Jermaine Jarvis, the revenue from the tax increase is intended to help the government cope with the shift in the tourism culture.
Jarvis revealed that even though Antigua & Barbuda have been seeing an increase in the number of tourist arrivals, it is not reflected in the amount of revenue earned from the sector because many tourists are choosing to stay in Airbnb places.
Airbnb rentals have emerged as a cheaper and more popular option, perhaps a global trend, for travelers who are hosted in the homes or properties of the owners.
The IRD official outlined that, “If more and more people are shifting from the traditional hotel accommodation to these types of accommodation, it will have impact on the revenue that should be generated from the growth [in the sector]”.
Hotel guests will be required to pay an additional one percent in sales tax on all accommodation as of March 1, an increase over the current rate of 13 percent, thereby bringing ABST for the sector to 14 percent.
Meantime, the ABST rate on all short-term boutique rentals will become applicable by June 1.
A forum will be held on February 18 for existing hotels and one on March 21 for small boutique hotels to discuss how the new changes to the ABST will affect their sales.
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Yes, according to another blogger, “business is business;” and yes, they should pay their fare share of taxes, however, at a lower rate, than what other well established businesses(mega hotels) pay.
Mr. Jarvis might be short in stature, but he nah play when it comes to revenue collection lol.
If Pringle can pay tax fu dead darg, then certainly the Air bnb folks ought to as well.
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