Antigua and Barbuda reduces ABST to 7% for Christmas season

Antigua and Barbuda’s Prime Minister and Finance Minister Gaston Browne has revealed that he has slashed the Antigua and Barbuda Sales Tax (ABST) for the holiday season.

On December 20,21 and 22, 2024, the ABST rate will go down to 7% from the current 17%, thus giving shoppers yet another chance to save big during the Christmas festivities.

The announcement regarding the cost cutting

The revelation made on the Browne and Browne show on Pointe FM, is a follow up of the government’s desire to ease the monetary burden placed on Antigua’s residents and boost the economy.

It is believed that with the savings of 10% more of household income, the consumer expense would increase during one of the most popular shopping seasons of the year.

Benefits for the retailers

All is not bad news for local businesses since the new tax cut has other add-ons. Supermarkets are expecting higher traffic rates to their stores and enhanced sales rates as consumers seek ways of optimizing their use of existing savings.

This is remarkable as for the Government’s plan is especially favourable for small and medium cap companies that depend more on holiday sales to turn their yearly profits.

“This measure is aimed at enabling our people to make purchases during the festive season and boost the economy in the process,” Prime Minister Browne said while launching the initiative.

Initiative aiming at over all progress

Though a short time decrease in revenue will be inevitable, this decision corresponds to general economic policies regarding the support of economic growth.

Higher quantities of commuters could serve to compensate for the reduced returns due to greater turnover by consumers.

Boosting local market

The initiative also assists consumers to spend locally and to avoid comparing prices with other countries or the internet, hence conserving local resources.

But problems of congestion in stores and even stock out may come up because of the few numbers of days that are permitted for the campaigns, that is the three mentioned days.

That is why, the government has declared this as a tax suspension to give boost to the economy or to support local business through the Christmas holidays.