Prime Minister Gaston Browne has announced two rounds of sales tax relief planned for April and August, designed to ease the financial burden on Antiguan and Barbudan households during periods of peak spending.
According to Antigua News Room, Cabinet has already approved the removal of the Antigua and Barbuda Sales Tax (ABST) on food and school supplies for April. A second round of relief is scheduled for August to coincide with the back-to-school shopping season. Browne made the announcement on the Browne and Browne Show on Saturday, stating that the timing is intended to deliver targeted support when families typically face higher costs.
The prime minister explained that the initiative originates from a Cabinet decision taken in January and forms part of a broader package of cost-of-living measures.
"We also promised as well, there was a policy decision taken in January in which we said that we would give periodic reduction of the ABST to reduce the cost of living," Browne said.
Browne noted that while the government initially considered wider tax reductions, the relief was ultimately limited to food and school supplies following concerns raised by the International Monetary Fund regarding potential impacts on government revenue.
The ABST cuts are accompanied by a five percent interim salary increase for public servants, effective at the end of March, as negotiations over a final wage settlement continue. Browne said similar interim measures were applied during previous negotiation cycles, including around 2016 and 2017.
The government is also raising the national minimum wage from approximately EC$9.00 to EC$11.50 per hour — an increase Browne described as one of the largest single adjustments to date. He said the EC$2.50 rise is aimed at closing the gap between the minimum wage and a livable income, with a stated target of reaching EC$13.00 per hour within two to three years.
Browne attributed the broader cost-of-living pressures in part to rising global prices driven by geopolitical tensions, including the conflict in Iran, which have pushed up fuel and food costs for import-dependent economies such as Antigua and Barbuda.
"We have policies in place for all, for the most vulnerable among us, and certainly when it comes to the issue of cost of living, we're doing all we can to make sure that we suppress prices," he said.
The prime minister also stated that the government has absorbed recent increases in petroleum import costs rather than passing them on to consumers, keeping local fuel prices stable despite higher expenditure.
