The government will revise its controversial 40 percent vehicle licensing fee increase following widespread public criticism, with a new tiered system expected to be presented to Parliament next week.
Prime Minister Gaston Browne announced Saturday that motor cars could, instead, face a flat $100 annual increase, while SUVs, heavy equipment and larger commercial vehicles may still be subject to the full 40 percent hike due to their impact on road infrastructure.
“We value consultation with our people,” Browne said during his weekly radio programme. “Having had this issue ventilated in the public domain, we can now come up with a happy medium as to how we position the increase.”
The announcement comes after members of the opposition, including Opposition Leader Jamale Pringle condemned the initial across-the-board increase as “wickedness of epic proportions” and called for its withdrawal, citing the potential hardships for residents, contractors, and small businesses.
Under the revised proposal, different fee categories would be established based on engine size, with smaller cars likely facing lower increases than larger SUVs and commercial vehicles.
The Prime Minister indicated that buses would be exempted to protect vulnerable citizens who rely on public transportation.
The government said its aim will be to use the additional revenue to service a $100 million bond for road infrastructure improvements, with local banks ECAB and ACB providing funding.
The Prime Minister emphasized that strict oversight mechanisms would ensure funds are used exclusively for road construction and maintenance.
When initially defending the increase, Prime Minister Browne argued that licensing a Vitz motorcar currently costs about $280, meaning the originally proposed 40 percent increase would have added $104 annually or less than $9 per month.
He sought to justify the increase by pointing to Antigua and Barbuda’s tax burden of 17.5 percent being below the regional average of 24 percent.
Last week, Pringle criticized the government’s handling of the announcement, pointing out that no mention of the increase was made during the December 2024 Budget Presentation or subsequent debate.
“It is a betrayal of the people’s trust… and so it finds citizens and residents financially and mentally unprepared,” Pringle claimed.
Meanwhile, the Antigua and Barbuda Transport Board is expected to provide technical guidance on specific engine size categories before the measure goes to Parliament, with implementation expected by early April.
