Tuesday, May 23, 2006

ST JOHN'S, Antigua: The Antigua and Barbuda Sales Tax Act 2006 is presently before parliament but the Inland Revenue Department is proceeding with a registration drive commencing this week at the Multi- purpose centre.

According to Co-ordinator of the ABST Implementation Team, Everton Gonsalves, efforts are being made to ensure that all stakeholders are properly sensitized on the Antigua and Barbuda Sales Tax.

To this end, prospective registrants can expect to receive registration materials and invitations to attend registration and training seminars with the commencement of a registration Drive starting Tuesday, May 23, at 7pm and continuing nightly.

The Antigua and Barbuda Sales Tax Act provides for the imposition, collection, and administration of a broad-based tax on consumption in Antigua and Barbuda, which will replace a number of existing, less-efficient taxes. The tax is modeled on the “value added” type consumption taxes in use in over 120 countries around the world, including many of the other countries in the Caribbean region.

ABST is a single rate, broad-based, multi-stage transaction tax, imposed and collected at each stage in the chain of production and distribution. The tax will be collected by businesses, but the final tax burden is intended to fall on domestic consumers. The broad base of the tax will limit the distortions produced by the current taxation regime and provide for simpler compliance and administration than the existing raft of taxes being replaced.

Gonsalves adds that the ABST is likely to replace a number of existing taxes including the Consumption Tax, the Hotels Tax, the Hotel Guest Levy, Restaurant and Catering Services Tax and the Telecommunications Tax.

A standard rate of 15 per cent is been considered for the Antigua and Barbuda Sales Tax; however, a special introductory rate will be offered to hotels.

The ABST is likely to take effect in the third quarter of 2006.

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