Bird Admits To Shortcomings in A&B Budget

by Amanda Banks, Tax-News.com, London

16 April 2003

Lester Bird, Prime Minister and Finance Minister of Antigua and Barbuda, has conceded that the tax measures in the 2003 budget were made with an election in mind.

The Antigua Sun on Monday reported Bird's reaction to growing criticism of the populist measures in his budget, quoting him as announcing that:

"It clearly intends to make sure that there are no new taxes and all the things that go with an election budget and I am not going to hide that, when we finish with the election then we are going to come back and do exactly what the minister says – all the adjustments we have to do."

Bird has admitted there are certain deficiencies in the latest budget, and appealed to his parliamentary colleagues to work together to resolve these issues.

Amongst the measures announced in the 2003 budget plan were the reduction of withholding tax from 40% to 25%, and the possibility of a further cut in corporate tax to 30% this year.

However, criticism has come from the government back benches as well as from the opposition. Former Trade Minister Hilroy Humphreys has reportedly called for the budget to be scrapped, whilst opposition leader Baldwin Spencer labelled it a "voodoo budget".

Nevertheless, the finance plan was passed in the lower house last Friday, despite the fact that opposition members voted against the measures.

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