2% Increase in ABST Already Yielding Positive Results
Finance Minister and Prime Minister Gaston Browne says the recent two percent increase to the Antigua Barbuda Sales Tax (ABST) has already started to yield positive results for the government.
In addition to the rate increase, there has also been an adjustment to the collection of the tax.
The government’s primary objective for the 2% increase was to increase the revenue and support their financial goals. In the Lower House of Parliament, Browne responded to “Questions to the Prime Minister” and highlighted the successes achieved so far.
One significant achievement is the timely payment of salaries to public servants, which has been made possible by the increased revenue generated by the ABST hike.
“One of the successes of collecting taxes is that we’re paying public servants even before the end of the month. Before, because we had to wait for individuals who paid in the ABST, paying 45 days later, there were times, based on the timelines in the collection, when we were bothering to be late, and in many instances, we had to borrow to meet the shortfall until early in the new month,” the finance minister stated.
“What has happened now, Mr. Speaker, is that the government’s cash flow has improved significantly. We have been able to cover the nine percent increase to public servants.” That in itself would have created a burden of over 30 million dollars a year,” he added.
The ABST was expected to yield in the region of $40 million.
PM Browne noted that in addition to covering those increases, the adjustments that the government made to the timing of the ABST collection would have helped it meet public servants’ salaries and wages more promptly.
The collection time was reduced from 45 to a 15-day cycle.
This story was first published by Antigua News on May 11, 2024: antigua.news/2024/05/11/2-increase-in-abst-already-yielding-positive-results. © 2024 Antigua News. Republication without permission is not allowed.
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Comments (1)
AAB May 12, 2024, 10:49 PM
The Prime Minister MUST be Ashamed of Not Collecting the Approximately 50% Of ABST that is said to be Outstanding in This Tax Collection in Preference to “Putting more Weight On the Backs of the Poor” in This Nation…… The Prime Minister And His Cabinet KNOWS that a “Pro-rated” Income Tax IS A Fairer Tax in THIS Nation …….
He himself stated how much he was able to save (in the Thousands of $$) when he and the Cabinet Abolished Income Tax in 2014 ……. I often wonder what These Persons who Administer Our Nation have done with their Consciences ……….. To Brag about the 2% Increase in the ABST Tax (which is burdening the Poor of This Nation) is Allowing the Government to Pay them (The Cabinet) Their Increase of 14 % (In one Full sweep) Plus other Increases on Their Allowances PLUS back pay for 1 Year ……. And the Civil Servants Salary …..,… is ……. (Can’t even find A Word to Describe the Lack of Empathy demonstrated) …… Further…… The Monthly Drain on the National Coffers that the Monthly Up keep of The Russian Cruise Liner which was seized through A Law passed in Parliament by The Members of the CABINET (using What I called CRIMINAL —- passing a Law with All 3 Readings in 1 Parliamentary Sitting —-) …….. THIS is the Main Reason why Civil Servants could Not be paid their Monthly earnings on time Mr Prime Minister……. Can’t you see That????? I am Praying that Our Good Lord Continue to Have MERCY on ALL Of Us ……. Because what is being done to the Poor of THIS Nation CANNOT be Right ….. Then The Prime Minister comes and BOASTS about All This as PROGRESS ……….. Sad….. Sad ….. Sad …..
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