Premier Cora Richardson-Hodge has announced that the government is “likely” to be able to offer the public relief from goods and services tax (GST).
The tax cut across several sectors was a key promise made by the now ruling Anguilla United Front during the party’s election campaign.
Speaking during the new administration’s first press conference on 31 March, the premier said there is a structured process involved in updating taxes.
This begins with checking if the government has the ability to implement the tax relief and to be able to “weather whatever tax losses may exist in relation to that”.
“Of course, it comes subject to the final determination in terms of capital projects and other expenditure which may impact the the the Government of Anguilla’s budget,” she said.
However, the premier remained optimistic, stating: “But at the end of the day, we can confirm we are moving ahead.”
She said the government is actively working on timelines, with the goal of providing the public with a full update on how the plan will be implemented within the next few months.
Three years of GST
Goods and services tax (GST) was introduced by the 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 (IGT).
During election campaigning last year, the now ruling Anguilla United Front proposed a goods and services tax relief plan.
This 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 party’s Facebook page in October, 2024, customers would save up to an estimated EC$40 million a year.
“Their invoices would be free of GST, allowing them to pay for other needs or to purchase more of what they needed without GST,” the Anguilla United Front said.
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.
