Managing the Economy

The UPP Government has as its mission the facilitation of efficient and equitable use of public revenue to foster stability, growth and equilibrium in the economy, while maintaining the fiscal planning and management as well as the debt management system of government. Under the UPP, economic activity will expand, mainly fuelled by new and ongoing projects in the construction industry and supported by the other service sectors. Given the ongoing global economic crisis, the tourism sector especially will continue to see highs and lows if the slowdown in the US and European economies persists. With this in mind, a UPP Government has taken proactive steps to develop programmes that will allow Antigua & Barbuda to respond effectively. Corporate Income Tax A UPP government recognizes that the development and expansion of the private sector is vital for the longterm economic viability of Antigua & Barbuda. In keeping with this view, the UPP will continue to create an enabling environment for private sector development by maintaining the corporate income tax rate which was recently lowered to 25 percent. A UPP government will continue to encourage private sector activity through the recently implemented Customs Renewal Programme and the Antigua & Barbuda Investment Authority. Personal Income Tax A UPP Government will make amendments to the structure of the PIT if and when the current global economic downturn creates excessive hardship for Antiguans & Barbudans. Individuals who pay personal income tax can claim income tax deductions in respect of

• Interest paid on residential mortgages
• Contributions paid into approved pensions schemes
• Health insurance premiums
• Tuition payments on behalf of children pursuing university studies

Tax Credits The upper limit of the tax credit offered to businesses which make financial contributions to the development of culture, education or sports will be increased from $250,000 to $500,000. Cost Of Living The Sunshine Government has a proven track record of Putting People First and will continue to provide meaningful relief from the financial burden on families. These are some of the programmes which the UPP Government will continue to fund:

• The School Uniform Grant under which the schoolchildren of the nation would continue to receive school uniforms for attendance to the nation’s school.
• The National School Meals Programme. Through this Programme a UPP Government will continue to provide hot meals to our school children on a daily basis.
• The Dollar Barrel Programme introduced by this UPP Government in 2004, continues to allow households to import food items, clothing and toiletries at a nominal fee of $1 during the Christmas Season. The number of households which will benefit from this Programme is expected to grow as it becomes more popular.

Basket of Essential Goods To help Antiguans & Barbudans cope with rising international prices, the UPP Government will continue to offer its Basket of Essential Goods which remains the widest in the region. All goods in the basket have attracted a reduction in the Customs Service Tax from 10 percent to 0 percent, and are zero-rated in relation to the ABST. A UPP Government will continue to expand this Basket of Essential Goods and maintain a zero rating on all items. Bus, Taxi & Tour Operators To prevent the operating costs of taxi and bus drivers and tour operators from escalating, a UPP Government will continue to grant:

• 50% reduction in duty on parts for bus, taxi and tour operators
• Concessions on batteries, windscreens, brake pads, tires and shock absorbers