The government of Antigua and Barbuda has approved a temporary reduction in the Antigua and Barbuda Sales Tax (ABST) to seven per cent, expected to take effect in the second or third quarter of 2026.
The announcement was made by the Director of Communications in the Office of the Prime Minister, Maurice Merchant, during the weekly Cabinet press briefing on Friday.
Mr Merchant said the decision followed ongoing international developments affecting the local economy and feedback from households and businesses over rising living costs.
Cabinet agreed the temporary cut in indirect taxes would help ease pressure on household budgets while encouraging consumer spending and broader economic activity.
The measure forms part of a wider package of fiscal initiatives aimed at providing targeted relief while maintaining economic stability. The government said the impact of the reduced rate would be closely monitored.
Further details, including the start date and administrative arrangements, will be issued by the Inland Revenue Department.
