IMF urges Antigua to increase its tax base
The International Monetary Fund (IMF) has advised Antigua and Barbuda to increase the tax collection as the current rate of 16% of revenue falls just one percentage point below the amount required to support the country’s developmental needs.
St. John’s, the capital city, does not impose income tax, resulting in the lowest tax-to-gross domestic product (GDP) ratio in the Eastern Caribbean Currency Union (ECCU).
IMF Managing Director, Kristalina Georgieva, who was attending an IMF-sponsored training program on economic and financial reporting, said that the 16% tax-to-GDP ratio is right at the margin, and below the threshold required to support the country’s priorities.
She added that there has to be a strong investment in ensuring that tax loopholes do not exist, and that the tax collected translates into revenues in a predictable manner.
She also stated that the country should explore ways to speed up economic growth to further increase revenues.
With the economy having grown by 5.9% in 2023, projected to increase to 6.1% in 2024, and then trim down to 4% in 2025, Georgieva suggested that the country could broaden the sales tax, introduce taxes on harmful products like alcohol or tobacco, or strengthen the customs system to collect more revenues.
Finally, she urged the country to collect every penny of taxes that are due, given that they are just barely meeting the 16% threshold.
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Comments (2)
Tired of BS May 6, 2024, 10:31 AM
Simple exercise:
Lets say we go to the supermarket and purchase $100 worth of items before sales tax. Total to be paid: $117.00
Now person A earns $1,000 per month
Person B earns 10,000 per month.
Obviously both customers pay $17 in taxes but, what PERCENTAGE of their salary are they paying?
Person A earning 1,000: 1.7%
Person B earning 10,000: 0.17% They are laughing in our face!!
However, mark my words, this administration will use this to increase indirect taxes, build more hotels and attract more criminals and questionable characters to “invest” in our lovely country…..its a matter of time
Jezz May 6, 2024, 10:01 AM
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