ABST Hike sufficient to cover salary increases for public servants
By Aabigayle McIntosh
The Financial Secretary of Antigua and Barbuda, Rasona Davis-Crump, has confirmed that the proposed two percent increase in the Antigua and Barbuda Sales Tax (ABST) will generate sufficient revenue to cover the 14 percent salary increase for public sector workers and other financial obligations for the government.
The ABST hike is expected to contribute an additional 40 million dollars to the government’s treasury.
The Ministry of Finance has proposed a 17 percent hike in the ABST rate as part of a series of recommendations aimed at boosting revenue collection.
Currently, the ABST rate in the tourism industry is lower than what applies in other sectors.
However, the new recommendation is to level the ABST rate across the board for general consumption in Antigua and Barbuda, except for the list of zero-rated items. The zero-rated items list will remain unaffected.
The Finance team has also recommended an increase in the luxury property tax from 0.3 to 0.5 percent, which will take effect from 2024.
Additionally, they are proposing a sin tax, a tax imposed on goods and services deemed harmful to society, such as tobacco, alcohol, and gambling.
The sin tax is expected to be set at a rate of about 10 percent, which will ultimately impact the Sir Lester Bird Medical Center when it comes to health and non-communicable diseases.
This story was first published by Antigua News on : antigua.news/2023/12/07/abst-hike-sufficient-to-cover-salary-increases-for-public-servants. © 2023 Antigua News. Republication without permission is not allowed.
About the author
The Editorial Staff refers to all reporters employed by Antigua.news. When an article is not an original creation of Antigua.news—such as when it is based on a press release, other media articles, letters to the editor, or court decisions—one of our staff members is responsible for overseeing its publication.
Read our editorial standards and corrections policy. Spotted an error? Contact the newsroom.
More from Antigua and Barbuda
View section
Senator Colin O’Neal Earns Political Science Degree at UWI Five Islands, Sets Sights on Law Degree
Senator Colin O’Neal graduates with a Bachelor’s Degree in Political Science from UWI Five Islands Campus and announces plans to pursue a law degree in 2027.
By Cory Wayland
Young Man Suffers Minor Scrapes After Leg Gets Trapped in St. John’s Sidewalk Grating
The incident raises fresh concerns about pedestrian safety following similar occurrences in the city.
By Cory Wayland
Mighty Sparrow’s National Funeral Set for October 16 as Trinidad and Tobago Prepares Grand Farewell
Two days of public viewing and a grand cultural procession will precede the October 16 Celebration of Life honouring the legendary entertainer whose music helped shape Caribbean culture.
By Cory Wayland
Antigua and Barbuda Art Week 2026 to Bring Folklore and Creativity to Life with Exciting New Experiences
From the legendary Jam Bull to evening gallery tours, live painting battles and interactive workshops, this year's Art Week promises an immersive celebration of Antigua and Barbuda's artistic and cultural heritage.
By Cory Wayland
Comments (1)
Mae-Mary December 7, 2023, 9:26 AM