ANTIGUA-Government to widen windfall tax bracket.

ST. JOHN’S, Antigua, CMC -The Antigua and Barbuda government says it has commenced discussions on expanding the scope of the Windfall Tax to encompass all businesses operating on the island that earn annual profits of one million EC dollars (One EC dollar = US$ 0.37) or more.

A statement issued following the weekly Cabinet meeting noted that under the current legislative framework, the Windfall Tax applies exclusively to the telecommunications, banking, insurance, and energy sectors and imposes a 10 percent levy on profits of one million EC dollars or more.

“Cabinet is now examining amendments to the existing regime that would broaden the tax base to ensure that all highly profitable enterprises contribute equitably to the nation’s social and economic development,” the statement said.

It said the discussions centered on the government’s growing investment in education and human capital development.

“Cabinet noted that Antigua and Barbuda has embarked on an ambitious expansion of its tertiary education sector, which includes continued support for the University of the West Indies Five Islands Campus as well as the institutions that comprise the Antigua and Barbuda College of Advanced Studies (ABCAS), namely the Alister Francis Campus (AFC), the Eustace Hill Campus (EHC), the Muriel O’Marde Campus (MOC) and The Harrison Centre.”

The statement said Cabinet considered that as access to higher education continues to expand and as the government invests significantly in facilities, programs and student opportunities, “it is appropriate to explore innovative and sustainable financing mechanisms to support these initiatives.

“The proposed expansion of the Windfall Tax is therefore being examined as one possible means of generating dedicated revenue to strengthen and sustain the country’s educational institutions.”

The statement said that the matter will continue to be deliberated at subsequent Cabinet meetings, with careful consideration of the legal, economic and social implications of the proposed changes.

“When Cabinet ultimately agrees on amendments to the Windfall Tax regime, the necessary legislative proposals will be brought before Parliament for debate and consideration,” the statement said, reaffirming the government’s “commitment to ensuring that the nation’s economic growth is shared broadly and that investments in education remain a central pillar of Antigua and Barbuda’s development agenda”.

Meanwhile, negotiations between the government and the Jamaica-based Sandals Resorts International (SRI) regarding outstanding tax obligations have been successfully concluded, resulting in a settlement agreement valued at EC$6.5 million.

“Cabinet welcomed the amicable resolution of the matter, noting that the settlement reflects the government’s commitment to prudent fiscal management while maintaining strong partnerships with investors who contribute significantly to the country’s economic development.”

In November 2024, Prime Minister Gaston Browne told the SRI to consider removing its property from his country after he claimed that the luxury hotel brand Sandals has adopted a policy of refusing to pay taxes.

Browne said then that Sandals, which owns the 373-room Sandals Grande Antigua, a six-star, all-inclusive, adults-only resort, owed millions of dollars in taxes.

The statement said that Cabinet has further agreed that five million dollars from the settlement will be allocated to commence the long-anticipated Renaissance Park Development at Fort James.

It said that the project is envisioned as a transformative recreational and tourism hub that will enhance the historic Fort James area and provide new opportunities for leisure, commerce and community engagement.