Prime Minister Gaston Browne has announced two rounds of sales tax relief planned for this year, alongside wage increases for public servants, as the government moves to address the rising cost of living. According to Antigua News Room, the measures were approved by Cabinet following a policy decision taken earlier this year.
The government will remove the Antigua and Barbuda Sales Tax (ABST) on food and school supplies in April and again in August. The timing aligns with periods of heightened household expenditure, including the back-to-school season.
Broader relief measures had originally been considered but were scaled back after the International Monetary Fund cautioned the government about potential impacts on public revenue.
Alongside the tax relief, public servants are set to receive a five percent interim salary increase at the end of March, while wider wage negotiations between the government and workers remain ongoing.
The government has also raised the national minimum wage from approximately EC$9.00 to EC$11.50 per hour. A longer-term target of EC$13.00 per hour is expected to be reached within two to three years.
Prime Minister Browne said the combined measures are designed to cushion residents from the effects of rising global prices, particularly for fuel and food. He added that the government has absorbed recent increases in petroleum costs in order to keep local prices stable.
