PM Browne defends vehicle licensing fee hike, says buyer tax concessions outweigh proposed increase

The prime minister of Antigua and Barbuda, Gaston Browne, has defended his government’s planned increase in vehicle licensing fees saying people have already benefited from considerable tax concessions while purchasing vehicles. He recently spoke on the matter during a radio programme after the decision to increase fees faced criticism. The government has plans to raise additional funds through hiked registration fees for road expenditures. 

Noting that duty-free exemptions have enabled vehicle owners to save thousands of dollars over the years, PM Browne said in the programme that someone made a complaint that a yearly increase of $100 over the life of a vehicle doesn’t come close to the tax concessions receiving while buying it.

“Be grateful,” the Labour leader said. He clarified that the $100 figure was only an example and the eventual increase could be $200, $300 or even $400 annually, depending on the vehicle type. 

The PM recently said the increase in the licensing fees is necessary to fund the betterment of the country’s road infrastructure, like through concretising them, since it protects them from elements more than asphalt. 

The funds raised will back the government’s road-improvement plan worth $100 million, which is supported by Antigua Commercial Bank and Eastern Caribbean Amalgamated Bank. 

“Serpent and the others want to make a political issue out of people paying maybe $200 more per year, but clearly, if you want more durable roads, you have to pay more,” PM Browne said in the programme. 

The PM also said that every dollar raised from the hiked fees would be kept in a dedicated Public Works account to ensure that all funds are spent only on the construction of roads and their maintenance. 

First hike in 30 years, PM says it was due

The hike will be the first time in three decades and PM Browne said it was due. “We are going to provide the people of Antigua and Barbuda with better roads,” he said, defending the decision.

“You have no choice now but to build more expensive roads, hence the need to raise additional resources so that we can deliver for the people of Antigua and Barbuda,” he added.

PM dismisses opposition’s criticism

While the opposition United Progressive Party (UPP) criticised the government’s proposed increase in vehicle licensing fees saying it would impact the common people’s cost of living, PM Browne hit back saying the people would gain more from the increase in fees than lose since they would get better roads for movement. He said motorists are spending more on repairing their vehicles due to poor road conditions and the hike in fees would lead to a practical long-term solution. 

“If it’s $100 more a year on licensing, that’s about $8 a month. People know that’s a better deal than constantly replacing tires and parts because of bad roads,” he said.

During a recent interview, UPP Senator Pearl Quinn-Williams warned the government against the economic consequences of the decision on the common people. 

She also raised questions about the government’s financial management, particularly the existing road tax revenue.

UPP Parliamentarian Richard Lewis appealed to the government to reconsider its decision. 

While addressing the criticism, PM Browne also compared his administration’s fiscal management with that of the previous UPP government. He said as against his government’s financial discipline, the latter borrowed $2.2 billion in a decade.

“We have reduced our debt-to-GDP ratio to about 60-62 per cent, compared to the UPP, which increased it to 104 per cent,” PM Browne stated. “The growth under our administration is real growth—not borrowed growth.”

Cabinet clarifies types of vehicles to be affected by rise

The Cabinet said last week that cars, buses and trucks will be included in the government’s net for the proposed increase in licensing fees to pay for major road expenditures. 

Recently, the Cabinet said the increase would be applicable mainly for ‘heavy-duty trucks and on earth-moving equipment’.

The Chief of Staff in the Prime Minister’s Office, Ambassador Lionel Hurst, said on February 13 that the price hike would affect nearly every type of vehicle, barring tractors.