The Antigua and Barbuda government is currently engaged in discussions with restaurant owners frustrated and overwhelmed by the short notice they received to implement a two percent sales tax increase.
According to the restaurant owners, the abrupt announcement made it difficult for them to adjust their pricing strategies and resulted in reduced profit margins and increased administrative burdens.
The government announced the hike in ABST (Antigua and Barbuda Sales Tax) from 15% to 17% on December 22, meaning restaurants had only three business days to update their point-of-sale systems and implement the new tax rate by the January 1st deadline.
It’s worth noting that in Antigua and Barbuda, ABST must be included in the displayed prices and cannot be added later.
Many restaurant owners still struggling to recover from the pandemic have expressed concerns that the new tax policy could lead to further financial hardship.
They say that updating their point-of-sale systems, including tills and computers, is a long and arduous process and that they may have to absorb the extra two percent themselves initially.
In light of these concerns, Cabinet spokesman Melford Nicholas was asked by Observer media what the government was doing to assist restaurant owners during this challenging time.
“I believe the ministry of finance officials have engaged all of these parties and whether or not anything can be done within good order is something that the government is ready to undertake,” Nicholas said
Alex Grimley, the proprietor of four renowned restaurants in Antigua, Sheer Rocks and Catherine’s Café being two of them, has expressed his relief regarding the current situation.
He stated that the financial secretary and her team are working diligently to ensure that all businesses in Antigua are facilitated and that the situation is not fatal.
Grimley further revealed that his company has finished updating its systems and is currently working on reprinting all of its menus in response to the new taxes imposed by the government.
Furthermore, Grimley has expressed his gratitude towards the government for listening to the concerns raised by local businesses in Antigua.
Although the cost of reprinting menus is substantial, many businesses in Antigua, including Grimley’s, are willing to bear it to comply with the new regulations.
