Government says ABST cut aims to ease cost pressures despite IMF concerns

Government says ABST cut aims to ease cost pressures despite IMF concerns

The government says a planned temporary reduction in the Antigua and Barbuda Sales Tax from 17% to 7% is intended to provide targeted relief to households facing rising costs, even as the International Monetary Fund has raised concerns about the measure, Director General of Communications Maurice Merchant said Thursday.

Merchant acknowledged the IMF’s position during the post-Cabinet press briefing, while defending the government’s approach.

“We do understand the concerns of the IMF and the government understands the concerns of the people,” Merchant said.

He said the administration views the temporary tax reduction as a response to hardship caused by imported inflation, noting that Antigua and Barbuda relies heavily on imports.

“One way of addressing the concerns of the hardship being faced by our people, through the importation of inflation, due to the high prices on the international market — and we import 90-plus percent of all goods — there is the need for some relief,” he said.

Merchant said the reduction is expected to take effect between the second and third quarters of the year, likely between June and August, and will be limited in scope.

“It is going to be specific to the purchase of school-related items and food products,” he said, adding that the ABST on those items would be reduced “down to 7%.”

He said the government believes the temporary measure strikes a balance between easing cost pressures on families and maintaining fiscal discipline.

Advertise with the mоѕt vіѕіtеd nеwѕ ѕіtе іn Antigua!
We offer fully customizable and flexible digital marketing packages.
Contact us at [email protected]