UPP says 2% increase on ABST is autocratic and requires a unified resistance

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UPP says 2% increase on ABST is autocratic

and requires a unified resistance

 

The United Progressive Party (UPP) expresses its disgust with the Gaston Browne Administration for its autocratic imposition of a 2 percent increase on the Antigua and Barbuda Sales Tax (ABST) and its failure to consult with the people, despite an assurance given by Government spokesman Lionel “Max” Hurst a week ago.

The Administration is making an attempt to pacify the public with its references to the zero-rated basket of food items. At the same time, it is downplaying the fact that all other consumer goods and services are subject to the ABST, and the increase in the sales tax will necessarily drive up the cost of living.

On a high-ticket – but not luxury – item, such as a refrigerator costing $5,000, that 2 percent increase will mean an additional $100 paid in ABST. On building materials valued at $100,000, the tax increases by $2,000.

The cost of legal, medical and other services will be similarly affected, as will the importation of goods at the Port.    

Without shame, the Antigua Labour Party Government is now attempting to stifle dissent by dangling the carrot of a 9 percent salary increase before public-sector workers.

That is unacceptable, since it has collected more revenues in its two-plus terms in office than any other administration – although with less to show for it than any previous administration, as well.

In fact, with significantly lower collections, the UPP Government, in its first term, increased salaries by a minimum of 17 percent.  This is in stark comparison to the Browne Administration’s financial mismanagement.

This year alone, the Government gave away more than $300 million in tax concessions. And yet, the Customs Department just announced its record-breaking collection of $327 million in the first 10 months of 2023 – without employing an aggressive and efficient tax-collection mechanism.

How, then, does the Gaston Browne Administration reconcile this boast with the 2 percent increase in the sales tax?

The hardship that will be inflicted on the poor – already insulted with an 80 cents-per-hour increase in the minimum wage – and on the shrinking middle class – with further tax increases expected – must be resisted by all persons with a conscience.

Accordingly, the UPP will be consulting with the trade unions and employer organizations, as well as the church and other civil-society groups, on crafting a unified resistance to this unconscionable increase.

And when a protest action is called, the UPP encourages all public and private-sector workers, consumers, and organizations to let their opposition to this increase be heard and felt.

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5 COMMENTS

  1. When the ABST was first introduced in parliament 2007 all of the ABLP parliamentarians with the exception of Senator Weston walk out and refused to debate the new tax. The lone ALP Senator was fired after presenting a truly analytical informative presentation. The ABLP would have none of it shouting ” THIS IS WICKEDNESS”.
    There is something about political parties when they are in opposition, MORE PEOPLE CARING.

  2. Thanks for the revealing information @ Dion Pelle. The idiot that leads our country is an economic dunce and continues to plunge Antigua and Barbuda into a quagmire. How can you be only collecting 49% of the government’s ABST tax revenue and opt to do a 2% tax hike to increase revenue. What an idiot! Man, grow some cahones and go after the outstanding 51%. Even if you collect another 10%, do the math. A 2% hike in ABST will give you 40 million annually. A 10% increased ABST collection will give you 5 times 40 million or 200 million( sounds like your mad rantings about YIDA), and cancel essentially the need to raise the ABST.
    But, Gaston Browne is too arrogant and narcissistic to take telling, hence our country will continue to sink. We can expect nothing from the cabinet of goons and compromised morons.
    I raise my hands in support of the protest.

  3. ‘m not sure those are the most compelling examples. If you can afford a $5000 fridge, what’s an extra hundred dollars to you? Many government workers can’t even afford to purchase the little $2000 one. It’s a difficult issue. It would be good to have a discussion of the pros and cons and alternative ways of solving all these economic problems.

  4. Perhaps the increased spending by public sector workers will also improve incomes in the private sector so everyone can generally afford more of what they need. In general, salaries in Antigua are too low for the cost of living.

  5. You know I was not going to comment at all on this 2% additional on the ABST. But I am very disturbed with the hypocrisy of the UPP and their cronies. The UPP thinks that being in opposition means you need to oppose everything this government does. Even if in the past you did worst. The UPP promised a lot of Public Consultation as their mantra of governance. But when in power they hardly consult. And when they did, Mr. Spencer’s famous line was, “whether I consult with Tom, Dick or Harry, in the end ah fuh me decision”. I don’t recall any consultation with ABST was introduce. Dr. Court did his best to tell us how PIT was going to be temporary, as it was to stop a gab in the government revenue. Well we know now it became permanent until the ABLP came to office with the promise to abolish it again. The UPP marched against the Education Levey calling it a wicked tax and Baldwin Spencer in parliament said that people should sharpen their cutlas and when the tax man comes at your door chap him up. Nothing wrong with that. Then in 2004 when they said there were enough taxes on the books and that they would do away with the fuel variation charge on our electricity bills. Oh yes that wicked tax remain and made our electricity bill even higher. Then they looked at the rate of cooking gas and they said we need to stop subsidizing that too and the prize went from $20 to $32 for a 20lb cylinder. but the worst was yet to come. Harold made a sweetheart deal with Sandals, allowing Sandals to keep our ABST amounting to hundreds of millions of dollars. And when our Prime Minister found out about it, he wrote to Sandals to stop that practice. And yes the war of words between Sandals and the Prime Minister began and the UPP took the side of Sandals saying the Prime Minister was running out Sandals out of the country. Well where is Sandals today and haven’t they adhered to the Prime Minister’s request and demand. So the UPP gave away hundreds of millions of our ABST to Sandals but now they protest because the government want to increase their revenue in order to pay Public Servants and increase in their salaries and pension. This could not be more hypocritical. Who would you say has the people and the country at heart? He who gave away your taxes in the hundreds of millions, or he who wants to share your taxes amongst yourself. I guess the UPP would rather see the Treasury empty so that the people with vote this government out of power because of the misery that would be brought upon them. These guys cannot honestly say that they love the country and the people if all their wish is that the people start to suffer. Well guys we are not yet in the arms of the IMF to have austerity measures. Because that is the prescription that the IMF comes with.

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