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By Aabigayle McIntosh
From March 1 the timeline for remitting Antigua and Barbuda Sales Tax (ABST) returns will be cut in half.
This is part of continued efforts by the government to streamline the tax management process.
Prime Minister Gaston Browne tabled the bill in the Lower House on Thursday indicating that this will lead to more efficiency in the system.
“Let’s say for instance we collecting $20 million in a month for the ABST and then we have to wait until the following month to collect it. It places pressure on the government, then it would be late in paying salaries and wages and even suppliers. We are trying to regularize things to make sure there is better cash flow and we can pay our bills on time,” he said.
Browne also stated that the amendment is not a contentious one. However, the opposition shared a different perspective.
They share the viewpoint that the 15-day window to remit the returns will put pressure on businesses, more specifically those operating on a line of credit.
Leader of the Opposition Jamale Pringle stated,” We have to be considerate if you say that businesses that are cash-based we are collecting cash on the spot. But companies in the service industry should be given some more time”.
Barbudan MP Trevor Walker also queried the feasibility of the timeframe indicating that some businesses are already struggling to survive.
“If there is a problem collecting the money in 45 days, how practical is it that you are going to have increased compliance in 15 days,” Walker.
St Mary’s North Member of Parliament Sir Molwyn Joseph supported the amendment saying businesses extending credit should perhaps ensure they collect the ABST upfront.
Crap – The 5th of one month to the 5th of the other month is one month. So is the 29th of one month to the 29th of the other. Someone needs a dunce timeout.
Crap