United Progressive Party All Saints West caretaker Harold Lovell is expressing skepticism over the government’s proposal to reduce the Antigua and Barbuda Sales Tax, warning that the plan lacks transparency and could lead to revenue shortfalls or new forms of taxation.
Speaking on Observer Radio, Lovell questioned how the government intends to cut ABST from 17 percent to as low as 7 percent without undermining the country’s revenue base. He said the administration has not explained how it would replace the income currently generated by the tax.
Lovell said the public deserves to see the financial calculations behind the proposal, repeatedly calling for the government to present its “side work” before any reduction is implemented. Without that information, he said, the announcement risks being more political messaging than fiscal policy.
He noted that ABST collections have risen sharply in recent years, arguing that the increase was used to justify higher spending. Lovell questioned why the tax was raised if it can now be dramatically reduced, and said the government must explain how it would cover the gap created by lower revenue.
Lovell also warned that a sudden cut, if not carefully planned, could result in hidden taxes or new fees being imposed later to make up for lost income. He said past policy decisions have relied heavily on Citizenship by Investment revenues to plug fiscal gaps, a strategy he described as risky amid growing uncertainty surrounding the programme.
He said any reduction in ABST must be backed by clear evidence that the government can still meet its financial obligations without shifting the burden onto consumers through indirect measures.
WATCH:
UPP caretaker Harold Lovell is questioning the government’s promise to cut ABST, saying the public has not seen the financial “side work” behind the proposal. Speaking on Observer Radio, he warned that an unplanned reduction could lead to revenue shortfalls or hidden taxes.
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LOVELL is a SPENT FORCE . We welcome the reduction. You will get your ASS kicked in All Saints West.
Behold the “ABST HOTEL RIPOFF” IMF ROMANTIC RHYTHMS WADADLI POWER CAN’T gangsta.
Butch must be smiling in his grave. Stupid Lovell was HOODWINKED. His ancestors must be spinning in their Graves
GRANDFATHER Harold. Go back in your ROCKING CHAIR. Your days are done. No one take you seriously.
So you complain that the people need a break and then you complain when a break is given.
Lemme tell you…politicians will make your head spin in this place.
Lovell doesn’t have to tell me this. Anyone with just a little bit of common sense knows this is another of Gaston’s tricks to secure votes for another term. Gaston understands there are lots of gullible people out there who he can make a fool of. Then after the election is the clap whip in our backsides with taxes galore
@Head spinning
He is OLD & CONFUSED!! WORST FINANCE MINISTER
@Head spinning The complaint is not about the tax cut it’s about what happens after the cut since its one of out main source of income to the government especially since it’s was announced as temporarily.
If you don’t want to read, you can listen to the video he’s questioning how can the government make up for the lost of revenue, is the reduction to 7% is viable and was it always viable without harming the government income, if there is something that can make up for it or is it a plaster solution and they will increase it after its implemented back.
Personally I would like to see a return of income tax or wealth tax and reductions in sales and duty fees so we can buy things as lower prices
Very simple, we can cut even 7 % Sales Tax, we can cut 20 %Import DUties. Just simple
Reducing the size of the government and the useless departments full with people that are doing NOTHING. Reducing the amount of vehicles that the government have on the Books plus all fuel and maintenance related to those vehicles, reduce the amount of Government Rental of building that is by far a NONSENSE. Cut the Size of the Government, and you no need to collect taxes so much.
Very simple, Antiguan are getting “Jobs” with the government just to have the same government borrowing money to covert the payroll, and pay for all allowance that thousand of government workers are enjoying today.
Private sector is the only one contributing to the Social Security Scheme and Medical Scheme, and is funny, how Government workers are the ones that claims more to those schemes.
For those who ask how can we reduce Taxes ==> Reduce the size of the Government.
Well, I doubt Gaston gonna cut Abst, because its not affecting him but us.. food is so expensive here not to mention fruits. Its ridiculous.. plus APUA ripping us off by over charging n resending paid bill for double payment .. if u dont understand the rob u blind. NO STREET LIGHTS, NO WATER , NO ROADS NO VOTES. ALLSAINTS road recking our vehicles n parts ain’t cheap. So NO votes from my House hold until these changes n reduction in ABST..
@Smith Great point sir. But no Antiguan government which wants a second term would ever implement it.
Indirect taxes mostly affect the poor. While direct taxation such as income tax are fairer across the board. The rich folks would never allow this government to reimplement it.
@Right Winger, correct but the rich folks who fund the parties and lobby so things wouldn’t let that happen unless a party is for the people.
@smith you can’t guess numbers without the maths to support it also CARICOM have an agreement which dictates the import duties for non CARICOM states.
I also agree the government could clean up the expenses in certain areas and getting out of rented buildings I wouldn’t say “cut the size of government”
Big government = More money to collect. That’s no rocket science and we no need to much debate about it to understand it.
So for those that are afraid to address this situation today don’t complain in the future.
If the Private sector economic activities don’t grow, then Government will face the consequences of collecting less funds. You need to reduce the expenses and do a serious review of lot of departments that are USELESS in the actual government scheme.
@Smith I agree with what you are saying. That’s exactly how Javier Milei in Argentina was able to “save” the country. However, if the citizens don’t want it then it will never happen. For a country with a government as large as ours (some people say 10,000+) it is next to impossible for them to cut the staff.
@Young Antiguan Communist How will a political party for the people ever gain power in Antigua? We love handouts and free fetes etc. Also, 3rd parties have never done well in the Caribbean.
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