Prime Minister Gaston Browne
Prime Minister Gaston Browne has announced that his government will look to implement two rounds of sales tax relief this year, with both reductions schedule for April and August to coincide with back-to-school shopping.
Cabinet last week approved the removal of ABST on food and school supplies for April, with Browne confirming the August measures on the Browne and Browne Show on Saturday, saying both rounds are timed to provide targeted relief when household spending on food and school-related items peaks.
He noted that the relief stems from a policy decision taken by Cabinet in January and forms part of a broader package of cost-of-living measures being rolled out by the administration.
“We also promised as well, there was a policy decision taken in January in which we said that we would give periodic reduction of the ABST to reduce the cost of living,” Browne said.
Browne said the government had originally wanted to apply the tax relief more broadly but narrowed its focus to food and school supplies following concerns raised by the International Monetary Fund, which advised that a wider application would significantly impact government revenue.
The ABST relief measures are being implemented alongside an interim five percent salary increase for all public servants, effective the end of March, while negotiations toward a final compensation figure continue later in the year.
Browne noted this was not the first time the government had provided an interim increase ahead of completed negotiations, having done so previously around 2016 and 2017.
The government is also increasing the national minimum wage from approximately EC$9.00 to EC$11.50 per hour, which Browne described as one of the largest single increases ever applied to the minimum wage.
He said the EC$2.50 jump was designed to close the gap between the minimum wage and a liveable wage rapidly, and that the government intended to push toward an eventual EC$13.00 per hour within a two-to-three-year period.
Browne said all of the measures reflect the administration’s response to rising prices driven by ongoing global geopolitical developments, including the conflict in Iran, which has pushed fuel and food costs higher across import-dependent economies such as Antigua and Barbuda.
“We have policies in place for all, for the most vulnerable among us, and certainly when it comes to the issue of cost of living, we’re doing all we can to make sure that we suppress prices,” he said.
He added that the government had also absorbed a recent increase in petroleum prices rather than passing the cost on to consumers, keeping fuel prices unchanged despite the higher import cost.
Thank you for this initiative
I was always confused about the April date. It makes no sence have ABST off school supplies when people shop for school in August. Good that you understood that!
Increasing the minimum wage is good; however, it still can’t get us a loan at the bank. We will remain in poverty because we still can’t afford to buy a piece of land and build a house for our family.
What about pensioners? They need more help too.
Cost of living still out of control. Rent, light, water, everything high.
Two rounds of tax relief sound good, but the real question is how much relief people will actually feel at the checkout. Because prices go up fast, but they rarely come back down.
I like the idea of removing tax on food, but let’s be real, if supermarkets don’t actually lower the prices, then what’s the point? That’s what I watching closely.
The minimum wage increase is definitely needed, no argument there. Nobody can survive comfortably on what people were making before. But when you really break it down, by the time you pay rent, buy food, and handle bills, that increase still feels like it disappearing fast. It’s progress, yes, but it’s not enough to ease the pressure people under every day.
Hope this isn’t just because elections around the corner 👀