The Valley Anguilla – Following a successful series of negotiations and a renewed commitment to Government transparency and accountability, The Honourable Premier Ellis L. Websters, MD has confirmed that the commencement date for the Goods and Services Tax (GST), initially scheduled for 1 January 2021, moved to 1 January 2022 has now been deferred until 1 July 2022.
While the first reading of the GST Bill will be held today 23 March 2021, the GST rate and threshold will be added for second and third readings for the Bill to be passed by 1 August 2021 in order to secure the Policy Based Loan from CDB in September. Failure to secure that loan will leave an even larger financial hole for Anguilla.
In order to secure UK Minister approval to defer the GST implementation date several tough decisions had to be made by the Cabinet to meet the shortfall in revenue that will be brought about by deferment of GST. While salary cuts for the Statutory Bodies and the Public Service were seriously considered the Cabinet felt that this step would have undesirable effects economically and socially. Affected key policies originally scheduled for 2022 include:
• Not introducing the Medical Assistance Policy for seniors 70 years and older
• Removal of the allocation for increased scholarships and reduction of training costs in 2022
• Removal of the allocation for new Education initiatives in 2022
• Freezing payment of deferred salaries for public servants, and
• Withholding social security payments on deferred salaries of public servants.
Any further deferral of GST beyond July 2022 would create a shortfall in revenue that could only be met by the consideration of salary reductions for Statutory Bodies and the Public Service – this would have to take effect from 1 January 2022 in order to generate sufficient savings.
Commenting on collective response to defer the implementation of the GST, Hon. Premier Webster stated that “The road ahead requires ingenuity, strict accountability and true Anguillian spirit if we are to successfully navigate these challenging times. This deferment will allow some time for the borders to re-open, the economy to restart, businesses to realise some economic activity and increased employment. We are all too familiar with the decisions made and exploitations that has saddled the country with its current debt. Anguillians are a people of pride who find a way to rise above whatever the circumstances that they encounter. Sacrifices will have to be made and prudence must be employed as we work together to create a better future now for all Anguillians”.
Public Consultations on the GST will continue as planned. Also, the rate, threshold and other technical parameters will be agreed and released in the near future.
– Press Release
23 March 2021
