Mr. Glenville John
In a special Government Press Conference held on Monday, July 21st, 2025, the Government of Anguilla informed the public of the upcoming exemption of the current 13% GST from all goods which will take effect on August 1st, 2025. Government also sought to have the public aware of the implementation of the 9% non-compounded goods tax that would be applied to all imports at the ports.
At the Press Conference, speaking on the exemption of the 13% GST on goods was Comptroller of Inland Revenue, Mr. Lonnie Hobson, and explaining the implementing of the 9% non-compounded goods tax at the port was Tax Consultant, Mr. Glenville John.
“On August 1st 2025, prices for goods should not include the 13% GST in any form,” Mr. Hobson said. “The Inland Revenue Department is mindful of the short transition period, and proposes the following: a business can display notices stating that GST already included in the prices will be removed at cashier’s desk, or Point of Sale. This all depends on the store type and the Point of Sale system that the store uses,” Mr. Hobson said.
He insisted that all Point of Sale Systems must be reconfigured to remove the 13% GST on all goods in stores. “This simply means that no sales receipt for goods should reflect GST on or after August 1st, 2025,” he stipulated.
The term “goods” for this purpose shall include items such as food items, construction materials, alcohol (liquor) clothing, foot wear, appliances, furniture and motor vehicles.
Mr. Hobson explained that after businesses sell off their current stock of goods, when calculating the prices of new replacement stock for the shelves, the 9% import tax that the merchant would have paid at the port will be factored into the pricing structure. “This 9% cannot be reclaimed by the merchant,” Mr. Hobson noted.
He explained, as well, that a 13% GST (General Services Tax) will still be applied to all services – services only. Note should be taken that although the acronym is the same, GST, the term is different – not Goods and Services Tax, but General Services Tax. These include accommodation, tourism services, professional services, electricity, communication, construction services, and other taxable services.
He noted that all items that are currently zero rated and exempt by prior provision shall remain exempted from the tax. These include: the export of goods and services, long-term accommodations, insurance services, specified medical and educational services, rental of land for agricultural purposes, gaming, international travel, postal services, day care services, and vacant land.
Mr. John stipulated that the 9% non-compounded tax on imported goods will be calculated and paid at the port on the CIF value of the goods only. The CIF value here means the Cost, Insurance and Freight on the merchandise imported. He said that the tax base for Excise Tax is calculated on the CIF value plus Import Duty plus the Customs Service Fee.
He noted that the new 9% tax will be calculated on the CIF value of the imported goods without Excise Tax, so its calculation does not take into consideration Import Duty or Customs Service Fee. This is what is meant when it is said that the 9% tax is not compounded.
According to the leader of Government business, the Hon. Premier Cora Richardson-Hodge, the aims of the repeal of the 13% GST are to reduce inflation; provide food security for residents; increase consumer purchasing power; and stimulate economic growth.
The Hon. Minister of Economic Development, Mr. Kyle Hodge, said that the repeal of the 13% GST on goods is indeed justifiable, for over the years since the tax has been implemented, Government has collected over and above what was expected to collect or what should have been collected in order to balance the budget.
For this reason, Mr. Hodge stated, “Government has made a decision to collect a little less in revenues for the greater good of our people.” He is therefore resolute that Government is already prepared to lose an estimated 21% in regular GST revenues through this repeal.
