Cabinet Approves Temporary Reduction of ABST to 7% in 2026

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.