In light of the coming into effect of the 2024 National Budget and the two percent
increase in the rate of the Antigua and Barbuda Sales Tax (ABST) which took
effect on January 1, the government has instituted steps to soften the impact on
citizens and residents in the country.
Recognising the likely impact of an increase in prices, the government has
broadened the list of items that are zero-rated for the tax; a move designed to
cushion the impact on the spending power of consumers, especially for those at the
lower rung of the economic ladder.
“Although there may be nominal impact on prices because of the rate adjustment;
let me emphasize that the change in the ABST rate will not affect a wide selection
of food and other essential items. Already, many basic food items we presently
consume are zero-rated; so consumers do not pay ABST on them,” Prime Minister
and Finance Minister Gaston Browne told parliament in December.
The government’s social relief programme currently covers the following items
that are zero-rated, meaning they do not attract ABST. These include;
most fruits and vegetables to include but not limited to bananas, oranges,
grapes, potatoes, broccoli, cauliflower and lettuce
baby products
dry goods and oils to include pasta, sugar, corn meal, flour, rice, and
cooking oils
chicken, fish, local produced meats, eggs, canned sardines and tuna
bread
cereals, cheese and milk
water
medicine, pharmaceutical supplies, and adult diapers
Additionally, the exemptions extend to supplies for use in the agricultural and
fisheries sectors.
The government is also promising that it will engage several agencies including the
Ministry of Finance, the Customs Division, the Consumers Affairs Division and
other stakeholders to monitor prices as revenue reforms are implemented.
Further, the basket of essential goods and the list of price-controlled items are
being reviewed and recommendations will be made to the Cabinet for appropriate
adjustments.
“The intention is to minimize the price effect on basis and essential goods and
ensure timely interventions are made to cushion any impact on vulnerably groups
in society,” the prime minister emphasized.
