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Antiguan Government contemplates increase in sales tax

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Prime Minister Gaston Browne says his administration is mulling over the possibility of increasing the Antigua and Barbuda Sales Tax (ABST) as it grapples with increased financial obligations, including salary increments for public servants.

Browne said that while a final decision on the possible ABST increase will be made next week, it is nonetheless the best way of increasing the government’s annual revenue.

“If we increase the ABST by about one or two per cent, if it is two per cent we will raise about EC$40 million“Now we are faced or will be faced with increased obligations to cover the increase in pay to public servants and we are determined that they must get their 14 per cent increase and that is going to cost us nearly EC$40 million and I say the most reliable way to ensure that is paid is to increase the ABST by two per cent.

“We are mulling it over, we have not made any determination but I just want to signal to the public that we may have to do that to ensure that we can meet not only existing obligations,” Browne said.

The government pays an estimated EC$38.6 million in wages, salaries and emoluments annually and Browne said existing state obligations require in excess of EC$60 million annually.

“When you look at the obligations we have taken on, the university (Four Island Campus of the University of the West Indies) you looking at over EC$20 million a year to sustain them. That is an obligation we did not have three years ago,” he said.

“When you look at the monies we have spent on education…the borrowing to support the repairs and expansion of our roads, the borrowing for the university as well…we also have to find money to pay that EC$80 million loan.”

The government will present its next budget to Parliament on December 5.

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