Revision of zero-rated basket of goods sees list cut by almost half, contradicting Gov’t’s earlier promise

Corn beef, tuna fish, and toilet paper appear to have become luxury
items now, as they have been removed from the zero-rated items in
the basket of goods.

State Media had published a list, headed “Schedule 2,” in which 64
items are detailed as exempted from the Antigua and Barbuda Sales
Tax  (ABST), which recently was hiked to a rate of 17 percent.

That list included meat, salted fish, smoked red herring, mackerel,
cheese, toothpaste, dish-washing liquids and other detergents –
among other items – which have been omitted from the revised list.
The newly released list, dated January 19, 2024, is the final list,
according to ABS Television.

This list, which details 33 exempted items, also includes selected
agricultural inputs, such as insecticides and fungicides; tools and
equipment; and fertilizers – none of which had been included in the
previous basket of goods. 

Hurricane shutters also made the list; and critics say it is obvious
why, as they allege that a government minister has an interest in the
industry.

In the meantime, other residents are outraged at the revised list,
which they say does not make sense. 

One woman says that items she frequently buys do not appear on
the new list, and she is wondering when toilet paper became a high-
ticket item that is now taxable.

In discussions held before the 2 percent hike in the sales tax,
Ministry of Finance officials had promised that the basket of zero-
rated goods would be reviewed to determine how it could be
expanded to cushion the impact on the poor.

However, consumers now say it appears that the Gaston Browne
Administration wants the people to suffer while being taxed out of
existence.

They say the revised zero-rated basket is unconscionable as it is half
of what past lists offered.

In the Budget 2024 Presentation, it was noted that the
Administration also would be looking to see what additional
services could attract the ABST.

Reportedly, taxing driver’s licenses had been one service under
consideration.