By Charminae George
Supporters and intrigued individuals journeyed to the Glanvilles Community Centre to participate in discussions on the upcoming increase in the Antigua and Barbuda Sales Tax (ABST) on Thursday night.
The event, held by the United Progressive Party (UPP), saw two panelists answering questions on whether the increase in the rate of ABST from 15 to 17 percent is justified.
This discussion was the first in a series of such meetings the party intends to hold on the topic.
The general consensus from the event was that an increase in the ABST should not be one of the first measures to increase government revenue.
Cassandra Simon, a chartered accountant and one of the panelists, suggested that the government should examine its revenue and formulate a suitable long-term plan.
“Every time there is a shortfall, or every time we need extra money, we add a tax. We are putting bandages on wounds that need to be sutured. We need to step back, decide on where we are going and what is the long-term sustainable approach,” she shared.
Simon reiterated that making sure taxes are paid by individuals and businesses is an alternative way of raising revenue without increasing taxes.
“We do not have a system where persons are compliant, and we do not have a system where our revenue departments are investigatory enough, or follow through enough to ensure compliance,” the accountant said.
Former finance minister Harold Lovell weighed in on concessions given to investors. He stated that concessions on items such as building materials are understandable, however, waivers on land transfer taxes are not.
“Transfer taxes ought to be automatic, there should be no waiver on transfer taxes. Once the business is moving and people are buying land, that’s where you should be getting tax revenue,” he said.
Retired lecturer, Dr George Daniels, who was the second of the two panelists, said that it isn’t necessary to increase taxes if the country is experiencing economic growth.
“If all the taxes remain the same, growth by itself should generate the additional revenue,” Daniels stated.
He added that when tourist arrivals increase, tourism also increases spending, which should provide additional income.
“Every year you hear the boast that Antigua’s economy has grown by five, six or seven percent; that is because we have more tourists coming in, more spending… That’s growth in the economy and that naturally should produce additional revenue,” he added.
The next town hall meeting will be held on December 14 at UWI Five Islands.
Prime Minister Gaston Browne announced the two percent increase in the rate of ABST on November 24 to fund an increase in public workers’ salaries.