Cabinet has approved a 10-percentage-point reduction in the Antigua and Barbuda Sales Tax during a targeted relief period in 2026. The decision aims to ease cost-of-living pressures and boost consumer spending.

Accordingly, the standard ABST rate will drop from 17 percent to 7 percent. Director General of Communications Maurice Merchant confirmed the move during Friday’s post-Cabinet briefing.

Importantly, the government will apply the reduction for a limited time. However, officials have not yet announced the exact dates. Instead, Cabinet will confirm the timing closer to implementation.

Meanwhile, Merchant explained that the relief will mirror past measures. Specifically, it will follow the model used during annual Christmas tax cuts since the Gaston Browne administration took office.

Therefore, the reduction will not last six months. Rather, Cabinet plans a shorter window. Merchant said the period could resemble the three-day Christmas reduction. Still, officials continue to refine the details.

Notably, the government is considering the second or third quarter of 2026. As a result, households and businesses can plan ahead. At the same time, authorities will assess economic conditions before finalizing dates.

Furthermore, the tax cut forms part of broader efforts to support families. The government aims to cushion rising prices while encouraging spending across key sectors.

In addition, the Inland Revenue Department will play a central role. The department will announce the start date and operational guidance. It will also outline which transactions qualify during the relief period.

Ultimately, Cabinet says the measure balances relief with fiscal responsibility. By targeting the timeframe, the government seeks maximum impact without long-term revenue loss.

For now, officials urge the public to watch for updates. More information will follow once Cabinet completes the final arrangements.

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