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During the 2024 budget announcement made by Prime Minister Gaston Browne, the government revealed its intention to introduce several fiscal measures.
These measures aim to improve tax compliance, reduce distortions in the tax system, and strengthen revenue collection. One of the measures includes the reduction of tax concessions granted, particularly discretionary exemptions.
The government aims to continue providing concessions as required and in accordance with the Antigua and Barbuda Investment Authority (ABIA) Act and the Small Business Development Act.
However, for ongoing routine business operations, including consumables, these concessions will be discontinued. The government also plans to implement an increase in property tax rates for properties valued at $3 million or more, as well as a 10% excise tax on alcohol, tobacco, and cannabis products.
Additionally, the Money Transfer Levy will be increased from 2% to 5%. Another measure includes broadening the ABST (Antigua and Barbuda Sales Tax) tax base by enhancing the list of services that would attract the ABST, including online streaming services.
Furthermore, the government plans to end the concessionary ABST rate applicable to several transactions, notably in the tourism sector.
This measure includes increasing the ABST rate from 15% to 17% and applying this rate to the tourism sector, which currently attracts a rate of 14%. The government hopes that these measures will help to create a more robust and sustainable economy.