SAN JUAN, Puerto Rico --Antigua and Barbuda implemented a 15 percent sales tax on Monday, becoming the latest Caribbean nation to seek a more streamlined tax scheme.

The start of the value-added levy on goods and services coincided with the repeal of several other taxes in the two-island nation to avoid drastic price hikes, according to Doug McLaren, the administrator in charge of applying the new system.

"This was needed for harmonization of taxes in the region as it becomes a single market economy," said McLaren, referring to the Caribbean Single Market and Economy, which groups together more than 6 million people in 12 eastern Caribbean nations.

"All the Caribbean nations will be using a VAT system within the next two or three years," he said.

About 70 protesters marched outside the government revenue office Monday in the Antiguan capital of St. John's to oppose the measure, which political opponents say will affect mainly lower and middle class families in the former British colony of 70,000 people.~~adz:Right~~

Molwyn Joseph, a former finance minister, told the Antigua Sun it would "usher in an era of financial and economic carnage."

Services and goods exempted from the new tax include medical services, education, local transportation and charges for water and electricity.

McClaren said most consumers will only notice price changes in the service industry, which has never been taxed before.

Antigua's hotel and tourism industry will be taxed at 10.5 percent for a two-year transitional period before then hitting 15 percent, he said.

Islanders flocked to car dealerships in recent days to beat the Monday deadline, leaving several dealers without certain makes of sedans.

"It's been very, very busy. I'd estimate that for the month of January we sold about 200 cars and the average is maybe 40," said Andrew Hadeed, manager of Hadeed Motors Ltd.