The Prices and Consumers Affairs Division (P&CAD) has been providing
assistance to traders and members of the public to navigate the changes in prices
and related issues following the coming into effect of the increase in the Antigua
and Barbuda Sales Tax (ABST).
Director of P and CAD, Orrin Steele said since the new increases in the tax took
effect on Monday January 1, the department has been inundated with calls from
business people and consumers seeking clarity on a number of issues.
“We received a lot of calls on Tuesday from various stakeholders indicating that
there are facing challenges in reflecting the increases on the items already on the
shelves. They indicated that they were able to change the prices in their systems,
however, they do not have the manpower to change all the items already on the
shelves. I believe this is going to be an issue for consumers at least until the end of
this week.,” he revealed.
According to Steele one particular businessman stated that he intends to wait until
he has sufficient manpower to change the prices on the shelves as he wants to
avoid getting into any dispute with consumers who may suggest that he was selling
the items at an incorrect rice. “There are challenges for both the consumer as well
as the business person in this regard,” he stated.
Steele said the basket of items that do not attract ABST is quite extensive and
along with basic food items, some baby products and adult diapers, the zero-rated
items now cover medicines, other medical products and even coffins.
He went on to explain that whilst he anticipates that there will be a slight increase
in the prices of goods not included in the controlled items, there will be increases
in some items that are on the zero-rated list. “For example, water does not attract
ABST but the bottles and the caps do so the prices for the water overall will likely
see an increase,” he noted.
Additionally, the director is advising that traders should note that any item sold
after January 1, 2024, will attract the ABST, regardless of when the specific item
was imported. “What this means is that it does not matter when the goods were
purchased by the business whether it was a month ago or even six months ago.
Once it is being sold after January 1, 2024, it will attract ABST,” he further
explained.
