Residents have been notified of a potential 2% increase in the Antigua and Barbuda Sales Tax (ABST) as the government grapples with heightened financial obligations, primarily to meet the salary increments for public servants.
Finance Minister and Prime Minister Gaston Browne cautioned the public to brace for a potential rise, emphasizing the necessity of addressing fiscal demands.
Explaining the imperative, Browne highlighted the government’s commitment to a 14% salary increase for public servants, estimating a cost of approximately 40 million dollars.
This potential ABST adjustment aligns with the government’s strategy to fulfill financial commitments, including loans for the expansion of the University of the West Indies, funding for road and infrastructure enhancements, and additional borrowings to cover operational expenses.
While the decision remains pending, Browne affirmed the government’s consideration of this measure in navigating its financial responsibilities.