Sales tax hike will cause further economic hardship, Daniel says, while Simon raps Government’s collection machinery

While Prime Minister Gaston Browne is claiming that the proposed
2 percent increase in the Antigua and Barbuda Sales tax (ABST) will
not be burdensome, Dr. George Daniel says the hike is directly
inflationary and will cause further hardship to citizens and
residents.

Critics say that Prime Minister Browne appears indifferent to the
people’s struggles and the further suffering they will endure with a
13 percent increase, as the ABST moves from 15 to 17 percent.
 
Dr. Daniel, a former university lecturer, says that inflation is already
robbing people of their spending power. Hence, the 2 percent hike
will only add to this difficulty, as the amounts now spent on goods
and services will obviously increase.

Accordingly, Daniel says the tax increase will negatively impact
growth and the economy.
 
Meanwhile, Cassandra Simon, a chartered accountant, says that
instead of increasing the sales tax, the Government needs to
strengthen its compliance machinery.
 
Simon says this is one of the biggest problems the Government faces
– and Prime Minister Browne has also admitted it.
 
She says the country’s internal revenue department is not
investigative enough and does not undertake follow-through to
ensure tax compliance, which would increase the Government’s
income.