Antigua and Barbuda Considers Expanding Windfall Tax

• The Antigua and Barbuda government has begun discussions on expanding the scope of its windfall tax to include all businesses earning annual profits of EC$1Mn or more, beyond the telecommunications, banking, insurance and energy sectors currently covered by the regime.
• Under the existing framework, the windfall tax imposes a 10% levy on profits of EC$1Mn or more. Cabinet is examining amendments that would broaden the tax base to ensure highly profitable enterprises contribute more equitably to the country’s social and economic development.
• Discussions focused on the government’s growing investment in education and human capital development, including continued support for the University of the West Indies Five Islands Campus and the institutions that make up the Antigua and Barbuda College of Advanced Studies (ABCAS).
• According to Cabinet, the proposed expansion of the windfall tax is being examined as a potential source of dedicated revenue to strengthen and sustain the country’s tertiary education sector, as access to higher education continues to expand and investment in facilities, programmes and student opportunities increases. The government noted that the proposal remains under review, with consideration being given to the legal, economic and social implications before any amendments are brought before Parliament for debate and approval.
• The proposed windfall tax expansion reflects the government’s effort to link stronger business profitability to broader national development, particularly education funding. However, because amendments would still need to go before Parliament, the proposal remains at the policy-review stage rather than an approved tax change.

(Source: Trinidad Express Newspapers)