The Government of Antigua and Barbuda is prioritizing improved tax compliance and collection in 2025 as part of its efforts to bolster revenue and ensure fiscal sustainability. Prime Minister Gaston Browne, during his 2025 Budget presentation, emphasized that while no new taxes will be introduced, this year will be marked as the “Year of Compliance.”
“Our government has always championed a low-tax threshold to boost disposable incomes and stimulate economic growth,” Browne stated. “While we will not introduce new taxes, we will insist on compliance with the payment of existing taxes to fund essential services and development projects.”
In 2024, Antigua and Barbuda saw significant improvements in tax revenue, which is projected to reach $1.19 billion in 2025, equivalent to 18% of GDP. Despite this growth, the Prime Minister pointed out that the nation still falls below the Eastern Caribbean Currency Union (ECCU) average of 25% of GDP for tax revenue, underscoring the need to enhance compliance.
The Antigua and Barbuda Sales Tax (ABST) continues to be a major contributor to government revenue, generating $412.2 million in 2024—a 25% increase over the previous year. However, Browne warned that non-compliance remains a pressing issue. “ABST revenue is held in trust and must be remitted to the Consolidated Fund as stipulated by law. Those who continue to manipulate ABST payments will be vigorously pursued and subjected to the applicable legal penalties,” he cautioned.
The government’s strategy for improving tax collection includes modernizing its tax administration systems to make compliance easier for individuals and businesses. This will involve the implementation of digital solutions to streamline the tax payment process, enhance efficiency, and reduce opportunities for evasion. Browne explained, “Investing in technology is critical to building a fair and effective tax system that supports economic growth while ensuring accountability.”
Efforts will also focus on raising awareness about the importance of tax compliance and its role in funding public services. The government plans to launch public education campaigns to inform citizens and businesses about their tax obligations and the benefits of timely payments. Browne underscored the collective responsibility of taxpayers, stating, “Compliance is not just a legal duty; it is a shared responsibility that binds us together as a nation.”
Key revenue sources expected to drive collections in 2025 include:
- Corporate Taxes: Projected at $133.9 million, reflecting strong business performance.
- Property Taxes: Expected to generate $42.5 million, boosted by increased property valuations.
- Revenue Recovery Charge: Anticipated to bring in $127.6 million, a testament to the government’s efforts to streamline customs and import duties.
Non-tax revenues are also projected to remain robust, contributing $222.9 million to total revenue in 2025. This includes Citizenship by Investment (CIP) receipts, which are expected to exceed $156 million, accounting for over 70% of non-tax revenue.
Browne also highlighted measures to address historical tax non-compliance, including stronger enforcement mechanisms and penalties for defaulters. “We are taking decisive action to recover unpaid taxes while ensuring that everyone pays their fair share,” he said.
The increased revenue from improved compliance will enable the government to fund critical initiatives, including infrastructure projects, social programs, and debt reduction efforts. Notably, the government plans to accelerate its arrears clearance strategy, allocating resources to settle outstanding payments to contractors, suppliers, and public servants.
While the focus on compliance has drawn praise for promoting fairness and accountability, critics have urged the government to ensure that enforcement measures do not disproportionately affect small businesses or vulnerable groups. Browne reassured the public that the administration remains committed to balancing enforcement with support. “We will ensure that our tax policies are fair, transparent, and designed to empower all citizens,” he stated.
As Antigua and Barbuda moves forward, the emphasis on strengthening tax collection reflects the government’s broader commitment to fiscal responsibility and sustainable development. With improved systems, increased compliance, and strategic investments, the nation is well-positioned to achieve its economic goals while providing essential services for all its people.
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Dream on PM. This is not going to happen under the present leadership and staff at the Inland Revenue Department. They are lazy. This will only be acheived if you bring accountants in to do this job. The current staff sit in their offices and go after the easy targets. Certian businesses, owned by 2 specific ethnic groyps, are never approached. The same by the way applies to Medical Benefits and Social Security inspectors.