Financial Secretary of Antigua and Barbuda, Rasona Davis-Crump
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.
I thought they were going to tax sodas drinks. Only the poor people will be paying majority of this 2%, especially in the supermarkets and at Port to clear their barrels sent to them by family members overseas. The Personal Income Tax (PIT) were generating close to this amount expected from the ABST increase, which were being pay by the high paid salary and wage bracket earners, who earned $3,501 and more monthly. Now with this ABST Increase of 2%, rich and poor will be paying it. The people who earned less than $400 weekly will feel it the most. Social Security and Medical Benefits will also increase in January 2024.