ST. KITTS-Government announces two days of discounted VAT days.

BASSETERRE, St. Kitts, CMC – The St. Kitts-Nevis government has designated two days this month as “Back-to-School’ Discounted VAT Rate Days,” extending the fiscal waiver usually granted to citizens during the Christmas period.

In a statement, the government said on August 25 and 26 all value-added tax (VAT) registered businesses will charge VAT at the rate of five percent on the sale of goods only.

All tangible items subject to 17 percent VAT will qualify for the discount on the VAT Rate Days. Items eligible must also be available for sale and immediate issuance or delivery to the customer on Discounted VAT Rate Days,” a government statement said.

In addition, Cabinet has decided that the guidelines implemented on the December Discounted VAT Rate Days should be applied to this month’s exercise.

“This means that the purchase of vehicles will be subject to the Discounted VAT Rate on August 25 and 26,” the statement said.

Prime Minister Dr. Terrance Drew, in an address over the last weekend, marking the first anniversary of the ruling St. Kitts-Nevis Labour Party (SKNLP) victory at the polls last August, said that the full, discounted VAT two-day packages would not just be held during Christmas but to three times per year, adding Easter and the summer.

“Additionally, we implemented a duty-free allowance for barrels and containers of foodstuff up to 400 pounds in weight, benefitting travelers and non-commercial importers with a duty-free allowance of EC $540 or US $200 off the cost, insurance, and freight (CIF) value of goods,” said Drew, who is also the Finance Minister.

He said his government has also subsidized the cost of fuel significantly and electricity to nine million dollars (One EC dollar=US$0.37 cents) a month.

“Overall, we are spending over a quarter of a billion dollars per year to ease the burden on our people,” Drew told the nation in his broadcast.

Drew also said that in the first quarter of this year, the economy “rebounded significantly with growth in multiple sectors such as tourism, agriculture, financial services, and the strengthening of the Citizenship by Investment Programme (CBI).”

Under the CBI, foreign investors are granted citizenship of the twin island Federation in return for making a substantial investment in the island’s socio-economic development.

Drew said that over 2 500 jobs had been created during the first quarter of this year and that “the month of June was historic for Inland Revenue, where the highest-ever tax collection was registered, despite no new taxes, no increase in existing taxes nor the restoration of reduced tax rates.

“Additionally, the Development Bank provided over 300 small business loans. This demonstrates that the foundation of the economy is sound, and we are on track to full economic recovery as we battle through this challenging post-COVID period, complicated by the existential threat of climate change, conflicts and disruptions in global supply chains, and lack of access to concessionary loans from the mainstream international financial institutions.”

He said, “Despite all these challenges, we are on track to full economic recovery by the end of 2023.

“Further, we will receive a study on revenue sharing between St. Kitts and Nevis shortly, and we intend to create a sovereign wealth fund to safeguard our financial future,” he said.