Local companies that provide tour services to visitors will be required to start paying Antigua and Barbuda Sales Tax (ABST) from October 1, 2020.
According to Tourism Minister Charles Fernandez, tour operators had been notified before but they requested more time before they start to comply with the tax law.
Fernandez explained that tour operators needed more time because some of them have already booked tours at a price excluding the tax.
The Tourism Minister also said that the tax as prescribed was only to be applied to the tour operators’ final charge to the guests they serve and not on every component activity that comprises the overall tour.
The tax revenue will be put towards improving infrastructure around St John’s and the island on a whole.
According to Fernandez, this will include rehabilitating the sewage system and APUA’s electrical and water network.
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Not all local tour operators heard this news before now, nor a deadline for implementing it. Those operators who have already signed contracts with cruise lines for next year would be unable to absorb this additional amount this year and coming 2020/2021 season. It is doubtful that the cruise lines will accept this tax at such a late date.
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