|Antigua to Abolish Income Tax in April|
Antigua and Barbuda's government will abolish personal income tax on 1 April this year.
Prime Minister and Minister of Finance Gaston Browne was elected in 2014 and one of his campaign promises was to scrap the tax, which was introduced in 2005.
The government currently charges a 25 percent levy on income over XCD180,000 per annum (app. USD67,400). The rates are much lower for lower incomes, and each tax resident has an annual personal income allowance of XCD36,000.
Browne aims to make Antigua and Barbuda more attractive than its competitors by attracting the headquarters of companies, professionals, wealthy foreign retirees, as well as investors on the Citizenship by Investment Programme. The measure, he says, will also increase individual disposable income, not only for consumption but also for investment for wealth creation.
The implementation of the promise will cost the government XCD37 million in lost revenues. According to Browne, however, this loss will be partially recouped by raising the Revenue Recovery Charge, a levy imposed on the gross value of most imported and locally manufactured goods – it will increase from 10 to 13 percent, bringing in an extra XCD20 million in revenues. The charge has the advantage of being easy to collect, unlike income tax which, he says, is expensive to collect and difficult to enforce fairly.
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Published on our website on Jan.26, 2016