GST to be removed on all public entertainment events from 14 July

The Executive Council has approved the removal of goods and services tax (GST) on all public entertainment events held in Anguilla.

The charge will no longer apply to either cultural or commercial events such as concerts, sporting events, theatrical performances and similar public shows from 14 July.

According to the minutes of the Executive Council meeting on 5 June – published on 17 June – Premier Cora Richardson Hodge briefed members on the relief proposal.

The council approved the policy and instructed the Attorney General’s Chambers to prepare to completion the necessary legislative amendments.

The premier first announced the move during a government press conference on 1 June, explaining that it “directly supports our cultural economy and creative industries”.

She said it is part of the government’s broader GST relief initiative, which will also cover restaurants, wholesale and retail businesses, and manufacturing.

Richardson Hodge stressed that expediting the tax break for public entertainment events specifically is especially important as Anguilla heads into the summer festival season.

“This change responds to feedback from promoters and performers and encourages greater public participation in cultural events,” she said.

The premier said the target implementation date of 14 July will allow promoters to exclude GST from their ticket sales.

“The average annual revenue foregone is around EC$250,000 – so it is an affordable measure with a potentially big impact,” she concluded.

In a 6 June interview on Radio Anguilla, economic development minister Kyle Hodge said the revenue loss would be offset by the economic benefits of attracting more entertainment to the island.

He said the revenue collected from GST in the sector was relatively small but the negative impact on entertainers, event organisers and attendance was significant.

“Government will collect more revenue just by more visitors coming in for these shows, by more consumption taking place at these shows,” Hodge said.

“So sometimes it’s being able to incentivise these industries so that the spin off from incentivising comes right back to government.”

GST was introduced by the former Anguilla Progressive Movement government on 1 July, 2022, at a standard rate of 13%.

It replaced several taxes, including the accommodation tax, communication levy, environmental levy, public entertainment tax, and interim goods tax.