United Progressive Party All Saints West caretaker Harold Lovell is expressing skepticism over the government’s proposal to reduce the Antigua and Barbuda Sales Tax, warning that the plan lacks transparency and could lead to revenue shortfalls or new forms of taxation.

Speaking on Observer Radio, Lovell questioned how the government intends to cut ABST from 17 percent to as low as 7 percent without undermining the country’s revenue base. He said the administration has not explained how it would replace the income currently generated by the tax.

Lovell said the public deserves to see the financial calculations behind the proposal, repeatedly calling for the government to present its “side work” before any reduction is implemented. Without that information, he said, the announcement risks being more political messaging than fiscal policy.

He noted that ABST collections have risen sharply in recent years, arguing that the increase was used to justify higher spending. Lovell questioned why the tax was raised if it can now be dramatically reduced, and said the government must explain how it would cover the gap created by lower revenue.

Lovell also warned that a sudden cut, if not carefully planned, could result in hidden taxes or new fees being imposed later to make up for lost income. He said past policy decisions have relied heavily on Citizenship by Investment revenues to plug fiscal gaps, a strategy he described as risky amid growing uncertainty surrounding the programme.

He said any reduction in ABST must be backed by clear evidence that the government can still meet its financial obligations without shifting the burden onto consumers through indirect measures.

WATCH:

UPP caretaker Harold Lovell is questioning the government’s promise to cut ABST, saying the public has not seen the financial “side work” behind the proposal. Speaking on Observer Radio, he warned that an unplanned reduction could lead to revenue shortfalls or hidden taxes.