The government is exploring measures to ease cost of living pressures for Anguilla’s residents as global fuel prices rise amid geopolitical tensions.
Premier Cora Richardson Hodge announced on 23 March that the administration is reviewing options such as temporary relief on fuel taxes, duties and surcharges.
Speaking during a press conference, she said the Ministry of Finance and Economic Development is closely monitoring developments in global oil markets and potential implications for Anguilla.
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“As a small island economy that depends heavily on imported fuel and imported goods, we know that sustained increases in international oil prices can have direct consequences for our people,” she said.
“Those effects can be felt not only at the pump, but also in electricity costs, transportation, freight and ultimately the wider cost of living.”
She said the government is “actively reviewing” a number of targeted measures aimed at cushioning possible costs of living pressures on households.
In particular, the temporary removal of taxes currently applied to the importation of LPG, diesel and gasoline, including import duty, goods tax and customs service fee.
“We are also looking closely at the taxable basis on which fuel imports are assessed, particularly given that duty is applied on a cost insurance freight or CIF basis,” the premier added.
“This is significant, because where global freight costs increase, the taxable value also increases, which can result in higher taxes being collected simply because freight costs have risen.”
She said the government is assessing options to help offset possible increases in fuel surcharge for households and other segments in terms of electricity bills and other essential living expenses.
“At the same time, we will ensure that any measure adopted is targeted, fiscally affordable, operationally workable and capable of being implemented in a responsible and timely manner,” she said.
The premier said that the government is treating the issue with “urgency, seriousness and care”, and wants to ensure that any response is focused where it can make the greatest difference.
“Once a review is complete and the most appropriate package has been determined, further details will be provided,” she told the press conference.
Pressed for further details, she said that data had been requested from both ANGLEC and the Customs Department and received over the weekend.
