ABIA Explains Homeowner ABST Waiver

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Business News

Friday, 23 March 2012 02:30

By caribarena news

Antigua St John's - The goal is for transparency and accountability in the process of waivered taxpayer funds, according to Fitzroy Christian of the Antigua and Barbuda Investment Authority (ABIA).

He was speaking about the recently approved move to rid new homeowners of the burden of ABST when purchasing building materials.

Questions were recently raised about the ABIA's purpose in the process, and according to Christian, whatever is waived at the hardware store is refunded by the government through the store’s next shipment. There has to be control over what the declaration of the hardware store would be. Systems have also been put in place through the ABIA.

“Because the taxpayers’ money is involved, it really requires that investment authority to be very responsible in terms of how this thing is administered…" Christian said. "Taxpayers are forgoing concessions for economic benefit for the development of the country. So that has to be managed and accounted for."

The move falls under the Construct Antigua and Barbuda initiative in which the government offers duty free concessions at hardware stores. This aspect of the initiative was implemented last August, but it was reviewed and taken a step further during a steering committee meeting last week.

The Investment Authority is currently compiling the names of the potential homeowners who qualify to benefit from the advantage. These names will be gazette and published at a later date.

“What government has said is that duty is difficult to administer because of varying rates. So we are going with flat rates. The ABST is a flat rate of 15 percent,” Christian said.

This means homeowners who come through the ABIA will receive a certificate from the Authority to take to the hardware stores outlining the items on which ABST would be waived.

Going through the ABIA is the only way for homeowners to benefit from the waiver.

“They would receive their building material without ABST. And, additionally, the revenue recovery charge on what they would have purchased would also be removed… Those are the two things that the government is offering now with regards to Construct Antigua & Barbuda,” Christian said.

The revenue recovery charge is a flat charge of 10 percent on imported items.

“When a homeowner starts out with us, they come with their DCA approved plan, a copy of their estimate, and their contract with their contractor," Christian explained. "What we then do for the homeowner is send their list of quantities along with their plan to a quantity surveyor (QS) to ensure that the quantity presented reflects that house that is being built."

He added, "We have had lots of situations where the amount on the bill of quantities is either too little or too much. So it provides a safeguard for the homeowner and it also helps the government to know who is at the hardware store making the purchase. Because, when the QS is finished with the process it comes back to us we issue the homeowner a certificate, which is what they take to the hardware store. And we also give them an official list, which tells the hardware store what the homeowner is entitled to buy. It is designed to prevent abuse of the system as well."

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A homeowner would have to pay a fee of $300 if the QS has to visit the homes of individuals who have started construction before seeking ABST wavier from the Investment Authority and conduct the assessment there.

The Construct Antigua and Barbuda initiative has seen more than $22.9 M in projects passing through the hands of the ABIA since its introduction.

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