PM Says Government Rejected Tax Waiver, Not Cassada Gardens Redevelopment

Prime Minister Gaston Browne has defended the Government’s handling of the proposed Cassada Gardens Racetrack redevelopment, saying the administration supported the investment through major concessions but refused to grant a waiver of the mandatory 8 percent gaming fee.

Browne’s comments came in response to a public statement issued by the Antigua Turf Club, which said negotiations over a proposed EC$30 million redevelopment project stalled after the Government and the investor failed to agree on one element of the concession package.

In a statement posted Tuesday, Browne said the Government had already approved significant incentives for the foreign investor.

“Our government gave the foreign investor a ten year corporate tax holiday, a casino license among other concessions,” Browne wrote.

He said the sticking point was the investor’s request to be exempted from paying the statutory gaming levy.

“However, they demanded a waiver of the 8 percent gaming fee which all owner operators are required to pay.”

According to Browne, granting the exemption would have created an uneven playing field within the gaming industry.

“To waive it would give them an unfair advantage and we declined their offer,” he said.

The Prime Minister rejected suggestions that the Government opposed the redevelopment itself, questioning how the refusal to grant the waiver could be interpreted as a lack of support for the project.

“How does that translate into the government not supporting the project?” he asked.

Browne also indicated that if the success of the development depended on exempting the investor from the gaming fee, the Government would instead consider extending similar support to a local operator.

“If the foreign investor is depending on that tax waiver to develop the facility, we rather give the concession to a local operator, including the Turf Club itself,” he said.

The Prime Minister concluded by reaffirming the Government’s position that it would not approve concessions that reduce tax revenues beyond what it considers reasonable.

“No plundering and bartering of government’s tax revenue will be entertained,” Browne wrote.

The Antigua Turf Club’s statement had argued that the requested concession formed part of a financial model designed to keep funds invested in the redevelopment of the publicly owned racetrack, rather than allowing them to leave the project. The club said an updated proposal would be submitted and expressed hope that discussions with the Government could continue.

This article was originally published by Antigua News Room. Read the original article here: PM Browne Rejects Claims Government Blocked Cassada Gardens Redevelopment.