Government moves to phase out long-term tax breaks, citing misuse under old regime
The Cabinet of Antigua and Barbuda has approved a new policy limiting all tax concessions to a maximum of three years, beginning December 1, 2025, as part of a wider effort to strengthen fiscal discipline and curb abuse of the system.
Director-General of Communications Maurice Merchant announced that all existing concessions will cease on November 30, and businesses wishing to continue receiving benefits must reapply under the new rules.
Applications must include proof of business operations and evidence of tax compliance with the Inland Revenue Department.
Merchant explained that the Cabinet’s decision stemmed from concerns that some concessions—granted years ago—had “outlived their usefulness” and were being misused for purposes outside their original scope.
In some cases, benefits originally approved for hotel development were later applied to other ventures, such as restaurants or equipment imports.
“The government believes that three years is sufficient for any new project to take root,” Merchant said, noting that companies may reapply once their term expires.
The new framework aims to ensure that fiscal incentives are time-bound, transparent, and directly aligned with national economic priorities.
