Cabinet approves reduction of ABST
The Cabinet of Antigua and Barbuda has approved a temporary reduction in the Antigua and Barbuda Sales Tax (ABST) to 7%, to take effect during the second or third quarter of 2026, as part of broader efforts to ease cost-of-living pressures and stimulate consumer spending.
The announcement was made by Maurice Merchant, the Director of Communications in the Office of the Prime Minister.
Merchant told reporters at the weekly Cabinet Press Briefing on Friday morning that the decision followed careful consideration of ongoing international developments affecting the local economy, as well as sustained feedback from residents and businesses about the rising cost of essential goods and services.
Cabinet agreed that temporarily easing indirect tax burdens would help households better manage everyday expenses while encouraging increased commercial activity across the economy.
“This measure is intended to provide meaningful relief to consumers at a time when global pressures continue to influence prices locally,” Merchant said, noting that the move aligns with government’s wider objective of protecting household purchasing power.
The temporary ABST reduction forms part of a package of fiscal measures aimed at balancing revenue collection with targeted relief.
According to Cabinet, these include initiatives designed to cushion inflationary pressures while maintaining economic stability and supporting growth.
Cabinet also stressed that the impact of the reduced ABST rate will be closely monitored to assess changes in consumer behaviour and overall economic activity. Specific implementation details; including the exact start date and administrative guidelines; will be issued by the Inland Revenue Department in due course.
Merchant reiterated that the government remains committed to a balanced fiscal approach, one that supports the wellbeing of citizens while safeguarding the long-term sustainability of public finances.
Smells like election season to me
Election around the corner bait are being thrown out for who ever will may come but remember there’s a catch to that , people open your eyes 👀 ans ears oh tighten your seat belt hehehe it’s not a joke so take it seriously oh
wowwwww just when i finish license and insure my vehicle lol
Finally, some real relief we can feel in we pockets. A 7% ABST will make a difference…groceries, school supplies, lil shopping… everything counts these days. Big respect to Cabinet for listening to the people and trying to ease the pressure. Hope the savings actually reach consumers and not just stop at the counter. This is a good start now let’s see it work for the everyday man and woman 🇦🇬✨For all who saying is eleection gimmick then all dat in it . Fact is we all benefit
Skerrit you copying Antigua. Copy that one too nuh.
Sounding like a illiterate
Lower ABST might bring more people into the shops good for small businesses. When you think of it people dont even buy food in supermarkets like they use to. People order food overseass and ship down. Things tight in Antigua sso thats a good move. Should be year round tho
Start paying attention to the prices of your goods now, so you’ll know the adjustments when the tax break takes effect. These vendors are extremely dishonest. Epicurean packed their shelves with expired goods during the abst ease during December.
Expired goods? So consumer prize control nah sat nothing?
Why temporary? People need permanent relief, not election-season policies.
Temporary only? How about just removing it or leaving it permanently lower? Can’t you rich politicians see how challenging it is for ordinary people to keep up with the cost of living and keeping food on the table?
For example I who make a “decent” salary but have rent and a car payment, hardly ever go out, don’t spent money on fake lashes and nails and do my own hair at home, don’t eat out or party or fete… Lately find myself living from paycheck to paycheck because of the rising cost of food and other basic consumer goods.
Temporarily lowering ABST won’t help much. It needs to be permanently lowered so people can actually live and afford to eat.