Antigua and Barbuda Gov’t Moves Forward With ABST Increase Despite Opposition

• The Government of Antigua and Barbuda is going ahead with its plan to implement an increase in the Antigua and Barbuda Sales Tax (ABST) despite facing both public and political pushback.
• The primary focus of the Bill is to raise the current ABST rate from 15% to 17%. The government cites financial challenges as the driving force behind the decision, asserting the need for fiscal measures to bolster revenue streams.
• The Deputy Commissioner of the Inland Revenue Department, Jermaine Jarvis, anticipates that the ABST increase will contribute significantly to surpassing the tax revenue collected in 2022, which amounted to $752Mn. Of this total, slightly over $300Mn was attributed to ABST.
• Cabinet has unveiled plans to amend the existing “sin taxes” on alcohol, tobacco, and gaming. Additionally, a modest increase in airport taxes is anticipated, aligning with the government’s broader efforts to meet airport operation obligations.
• While these measures are positioned as essential for addressing financial challenges, they have encountered resistance from residents and the opposition United Progressive Party, with the latter picketing the Budget Speech in protest.

(Source: Antigua Observer)