Prime Minister Gaston Browne has emphasized that the proposed 40% increase in vehicle licensing fees is still under consultation and has not been finalized. Speaking on Pointe FM, he explained that while adjustments are necessary, the government is actively engaging with stakeholders before implementing any changes.
_“The 40% is not final. We are still in a consultative process.”_
Browne outlined the urgent need for increased revenue to fund a $100 million road improvement program, noting that vehicle licensing fees have remained unchanged for over three decades.
_“The reality is that licensing fees have not increased for over 30 years, yet the cost of maintaining and building roads has skyrocketed. It is not sustainable.”_
He highlighted that many vehicle owners have benefitted from duty-free concessions, reducing the overall tax burden on car purchases, which should be considered in discussions about the fee adjustments.
_“People need to ask themselves—how much have they saved over the years with duty-free concessions on vehicles? The same people who got tax breaks to import their vehicles now want to argue that they shouldn’t pay a fair fee to maintain the roads.”_
Browne argued that Antigua and Barbuda’s licensing fees remain low compared to other countries and that modern road networks require consistent investment.
_“Some people want world-class roads but don’t want to pay anything toward their upkeep. That is not a sustainable position.”_
Strict Use of Funds for Road Development
The Prime Minister dismissed concerns that the additional revenue would be misused, stating that all funds raised through the fee adjustment would be strictly allocated to road infrastructure projects. The financing model includes bank oversight, ensuring accountability for each phase of the $100 million program.
_“Every cent raised from this bond will be utilized for roads. The agreement with the banks ensures that we must account for the first $10 million before we receive the next installment. There is full transparency.”_
He stressed that well-maintained roads ultimately save motorists money, as poor road conditions lead to higher vehicle maintenance costs.
_“You don’t think people know that they have to be replacing parts every minute? They are driving into potholes and bursting tires. We are addressing that.”_
While the government sees the fee adjustment as necessary, Browne assured that discussions are still taking place to ensure fairness.
_“We are still in discussions. We are open to input. But people must understand—if we want good roads, there has to be a source of funding.”_
The final decision will be made next week.