- Antigua hints at phased increase to ABST
Prime Minister Gaston Browne will proceed with his government’s intention to raise the Antigua and Barbuda Sales Tax (ABST) by 2%.
Browne, who is also the finance minister, will announce the tax rise on December 15 during his 2023-2024 budget speech.
The ABST rate will rise from 15% to 17% as a result of the increase.
The administration previously stated that boosting ABST will assist in funding expanding expenditure commitments such as the 14% rise in public sector salaries.
During yesterday’s Post-Cabinet Press Briefing, Information Minister Melford Nicholas stated that authorities at the Finance Ministry deliberated on several options to reduce the expenditure gap in order to ensure that government spending is sustainable, with increasing the ABST being one of the top suggestions.
He stated that the tax increase is appropriate at this time and that the ministry is considering how it would be implemented.
“We’re still thinking that it is appropriate and the Ministry of Finance officials have been asked to look at a phased implementation of these measures and I guess more will come over the next two weeks,” he went on to say.
Nicholas believes that the 2% increase will have little to no effect on the pricing of basic food goods because many of them are zero-rated.
“As indicated by the prime minister…the government intends to protect the most poor and vulnerable,” he went on to say.
Flour, rice, chicken, veggies, and baby formula are among the zero-rated goods.
Citizens, according to Nicholas, should not interpret the tax rise as an indication that the country’s economy is crumbling, but rather that the government is working to improve Antigua and Barbuda’s budgetary situation.
