Antiguan Senate Approves New Income Tax

by Amanda Banks, Tax-News.com, London

31 March 2005

In a controversial move on Tuesday, Senators in Antigua & Barbuda approved new legislation introducing income tax in the jurisdiction for the first time in thirty years.

The new tax, which is to be levied at rates of between 10% and 25% on incomes above a certain level, has been introduced by Prime Minister Spencer Baldwin’s United Progressive Party as part of new measures aimed at reducing the country’s EC$300 billion debt ($US111 billion) and helping service a growing public sector wage bill.

However, the proposal did not pass unopposed and the four opposition Labour Party Senate members walked out of the chamber earlier this week in protest at the measure.

"God be with you as you take this country over the precipice," Labour Party Senator Gayle Christian was quoted as saying in response to the move.

The residents of Antigua & Barbuda have gone largely untaxed since 1976, save for medical, social security and education levies.

The new bill is expected to enter into effect on Friday.

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