Prime Minister Gaston Browne says his administration will introduce two rounds of sales tax relief this year, scheduled for April and August, to ease pressure on households during peak spending periods.

Cabinet has already approved the removal of ABST on food and school supplies for April, while a second round of relief in August will coincide with back-to-school shopping. Browne, speaking on the Browne and Browne Show on Saturday, said the timing is intended to provide targeted support when families face higher costs.

He explained that the initiative stems from a January Cabinet decision and forms part of a wider package of cost-of-living measures.

“We also promised as well, there was a policy decision taken in January in which we said that we would give periodic reduction of the ABST to reduce the cost of living,” Browne said.

The prime minister noted that while the government initially considered broader tax reductions, it limited the relief to food and school supplies following concerns from the International Monetary Fund about the potential impact on revenue.

The tax cuts come alongside a five percent interim salary increase for public servants, effective at the end of March, as negotiations continue on a final wage adjustment. Browne said similar interim increases were implemented in previous negotiation cycles, including around 2016 and 2017.

The government is also raising the national minimum wage from about EC$9.00 to EC$11.50 per hour, which Browne described as one of the largest single increases to date. He said the EC$2.50 increase is aimed at narrowing the gap between the minimum wage and a livable income, with a target of reaching EC$13.00 per hour within two to three years.

Browne said the measures are part of a broader response to rising global prices, driven in part by geopolitical tensions such as the conflict in Iran, which have pushed up fuel and food costs in import-dependent economies like Antigua and Barbuda.

“We have policies in place for all, for the most vulnerable among us, and certainly when it comes to the issue of cost of living, we’re doing all we can to make sure that we suppress prices,” he said.

He added that the government has also absorbed recent increases in petroleum costs, opting not to pass those increases on to consumers and keeping fuel prices stable despite higher import expenses.