Stronger-than-expected fiscal performance in the first quarter of 2025 has prompted the Ministry of Finance to ramp up enforcement against businesses suspected of underreporting taxes, particularly in the tourism sector.

Following a briefing to Cabinet this week, officials confirmed that key revenue streams—such as the Antigua and Barbuda Sales Tax (ABST) and Customs duties—have shown solid growth.

The Ministry credits this improvement to a combination of increased economic activity and more disciplined fiscal management.

According to Chief of Staff Ambassador Lionel Hurst, the Ministry reported that “discretionary concessions are down and revenues are up,” signaling an overall positive trajectory in government earnings.

However, Cabinet was also advised of concerns that some hotels are not declaring their full tax obligations, despite consistently high occupancy rates.

“We know the hotels are doing better than last year, yet some are still reporting the same or even lower levels of guest levy payments,” Hurst said at Thursday’s post-Cabinet media briefing.

He noted that the Inland Revenue Department (IRD) will be taking a more aggressive stance going forward.

The IRD will conduct estimates based on guest arrivals and the number of nights stayed—data which is captured via the country’s electronic embarkation/disembarkation system—to determine what tax payments should have been made.

“If the hotels do not meet the estimated threshold, the IRD will issue demand notices. And if they are challenged, the Department is prepared to defend its position,” Hurst said.

The government is also examining whether some cases amount to not just tax avoidance, but active tax evasion—something that could trigger further legal action.

The Cabinet has signaled its full support for the intensified scrutiny, which it says is necessary to ensure fairness in the tax system and to protect state revenues amid a growing economy.

While the government has so far refrained from naming specific businesses, the message was clear: those benefiting from increased tourist arrivals must also contribute their fair share to national development.