The people of Antigua and Barbuda have been assured that whilst the
government has committed to increasing the payments to public sector pensions,
it does not intend to introduce new taxes to finance that increase.
This comes from Government Spokesman, Ambassador Lionel ‘Max’ Hurst who
insists that no new taxes will be introduced, in light of the announcement that
monthly payments to government pensioners will be increased.
Ambassador Hurst was at the time speaking to reporters at the weekly post-
Cabinet press briefing held on Monday as Independence celebrations moved the
weekly Cabinet meeting to Friday.
The spokesman noted that it is still early days, with a team at the Ministry of
Finance being tasked with determining what is affordable and what revenue
stream is likely to be adjusted to ensure that revenues can match the increase in
expenditure that would be triggered by an increase in pension payments.
The precise amount is subject to negotiations and affordability, given the 14%
increase over several years which current government employees are beginning
to enjoy.
Ambassador Hurst said with certainty that the intention of the government is not
to impose a Personal Income Tax. Instead, he indicated that reviews will be
carried out in areas to include luxury taxes. He drew attention to the luxury tax
that is placed on high-end vehicles, noting that there is no reason why the
government should not insist on collecting these monies as well as revenues due
from the purchase of other luxury items.
There is no fixed date by which the planned increase for pensions will take effect.
However, Ambassador Hurst predicts it will likely be sometime in 2024. Hurst said
he anticipates, based on the discussions taking place, that this could be in place
by the end of June next year.
