No New Taxes In Antigua's 2014 Budget Statement
by Mike Godfrey, Lowtax.net, New York
29 January, 2014
Antigua and Barbuda's finance minister, Harold Lovell, has presented the 2014 budget to legislators, saying that the current administration does not intend to introduce any new taxes or increase existing taxes.
The XCD874.8m (USD324m) budget anticipates a 15 percent increase in revenue from 2013, but the finance minister insisted that the government would not be looking to hike taxes to provide this increase. Rather he said that "the growth in revenue will be a result of increased economic activity in 2014 as implementation of a number of projects I highlighted earlier commences; the revenues generated through the Citizenship by Investment Programme; and continued reforms in the tax administration system that will bring about increased compliance."
Indirect taxes are expected to provide XCD484.8m in 2014, of which XCD224.4m will come from the Antigua and Barbuda Sales Tax (AVST), Lovell said in his budget presentation. Meanwhile, the country's Citizenship by Investment program will bring in about USD60m.
Mr Lovell also said that the rate of personal income tax imposed on employees who earn between XCD3,501 and XCD15,500 a month will be reduced to eight percent from the current 10 percent.
In addition, the personal allowance threshold for tax-free income will be increased from XCD3,000 to XCD3,500 effective January 01, 2014. This measure will result in the removal of more than 4,000 people from the income tax list and will cost the government an estimated XCD9m in tax revenue in 2014.
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