Economic advisors from Barbados will be in Anguilla soon to review the government’s goods and services tax (GST) relief plan, according to Premier Cora Richardson-Hodge.
If implemented, the plan, proposed by the Anguilla United Front during last year’s election campaign, will see the taxes cut across several sectors.
The premier said members of the Caribbean Regional Technical Assistance Centre (CARTAC) will conduct a “wholesale review and a detailed assessment” over the coming weeks.
Speaking during a government press conference on Monday, 14 April, she said the visitors will see how best the plan could be implemented.
“We are expecting that the these measures and others will assist with the cost of reducing food,” Richardson-Hodge said.
On 31 March, the premier explained that there is a structured process to updating taxes which includes checking if the government has the ability to implement the relief.
Three years of GST
Goods and services tax (GST) was introduced by the former Anguilla Progressive Movement government on 1 July, 2022, at a standard rate of 13% to consumers.
It replaced several taxes, including the accommodation tax, communication levy, environmental levy, public entertainment tax, and interim goods tax (IGT).
The new goods and services tax relief plan would eliminate GST on all sales by retail, manufacturing, wholesale, and restaurant businesses, as well as imported goods.
Meanwhile, businesses in all other sectors – such as tourism, construction and statutory bodies – making over EC$300,000 per year would still need to pay the tax.
According to an overview of the plan, published on the Anguilla United Front Facebook page in October, 2024, customers would save up to an estimated EC$40 million a year.
It added that the plan focuses on the sectors with the most benefit for vulnerable businesses and households, and the least impact on the government budget.
