( Real News Antigua) People are already dreading what the end of January will look like, even with a 9 percent salary increase promised to public servants.
And while the public sector might be getting some cushioning from
the 2 percent hike on the Antigua and Barbuda Sales Tax (ABST) –
from 15 to 17 percent – the most vulnerable private-sector workers
– including those with security firms, supermarkets, and stores –
will have no such comfort.
In 2023, the minimum wage was increased from $8.20 to $9 an
hour; but this will not cushion spending, as another 0.5 percent is to
be deducted in Social Security contributions as of January 1, 2024.
Chairman of the United Progressive Party (UPP) D.Gisele Isaac
points out that, even before the increase in the ABST, many people
were struggling financially.
Accordingly, she is concerned that the most vulnerable residents
will not be able to cope going forward.
Isaac anticipates a budgetary disaster for many families who,
already, can barely afford to make purchases at the supermarkets
and shops without putting back an item or two.
Meanwhile, as residents continue to focus on the impact on goods,
Isaac reminds them that the cost of services has also gone up.
Therefore, the UPP chairman says people will begin to feel the true
impact of the sales tax increase at their next spending cycle.
