ECCB Governor: Antigua and Barbuda needs a national dialogue on taxation

The Governor of the Eastern Caribbean Central Bank (ECCB) Timothy Antoine
says the time has come for Antigua and Barbuda to have a national dialogue on
taxation, with all the numbers on the table.
Speaking with media representatives at the tail end of his weeklong visit to the
country last week, Governor Antoine said this needs to happen, as Antigua and
Barbuda the second largest economy in the currency union, has the lowest level of
taxation while at the same time, it has the highest level of government payables or
debt.
“Antigua and Barbuda has the lowest tax rate and while that could be seen as a
source of pride, the country also has some of the highest payables, that is monies
owed to creditors/suppliers. That is not appropriate or ideal because this affects
business cash flow and businesses operate on cash flow. So what could be done to
help address these payables for example would be an important discussion I think
should be had,” he stated.
The ECCB Governor said the absence of the extra ‘fiscal room’ constrains what
the country can do in other areas, as there are other areas in the economy that need
to be serviced, but the government does not have the resources to do so.
During the Country Mission to Antigua and Barbuda, which he said was primarily
to report and to listen to the people of the country, Governor Antoine said he spoke
with a broad cross-section of the country including the government, the opposition,
the church, trade unions, the private sector, and the banking community. At these
sessions, he said the issue of taxation was raised and there appears to be a
willingness on the part of everyone to discuss the matter further.
“The matter (taxation) was raised. People want to have a conversation, I am not
saying people are ready to do A, Y, or Z. What I am saying is that people want to
have the conversation. I think people see the central bank as a neutral independent
party sharing views and having the conversation,” he explained.
The Governor also noted that some of the data that the bank possesses was
unknown to some people. For example, the regional comparisons on taxation rates,
etc. He advised that it helps when people are informed of what is happening
within the currency union on the issue of taxation.