BASSETERRE, St. Kitts, CMC – The St. Kitts-Nevis government has approved an initiative to provide citizens with financial relief and stimulate economic activity during the Easter season.
The government said that on April 12, the twin island Federation will observe an ‘Easter’ Discounted Value Added Tax (VAT) Rate Day,” on which all VAT-registered businesses will charge VAT at the reduced rate of five percent on the sale of goods.
“This decision marks a significant step in the government’s continued support of consumers and businesses during a time traditionally associated with increased spending.
The government said in a statement that “by slashing the VAT rate from the standard 1 percent to 5 percent, the government aims to alleviate financial burdens on citizens and ultimately bolster economic growth and stability.”
It said that to ensure the effectiveness and fairness of this initiative, certain guidelines have been established, and all tangible items currently subject to 17 percent VAT will qualify for the discounted rate of five percent on Discounted VAT Rate Day.
It said eligible items must be readily available for sale and immediate issuance or delivery to customers on Discounted VAT Rate Day. Orders for items not in stock will not qualify, and vehicles, guns, ammunition, cigarettes, and alcoholic beverages are excluded from the discount.
“This initiative underscores the government’s commitment to fostering a conducive economic environment and enhancing the welfare of its citizens.
“Businesses are encouraged to actively participate in Discounted VAT Rate Day, seizing the opportunity to attract customers and contribute to the nation’s economic revitalization efforts<’ the statement said, with the government extending “its gratitude to all stakeholders for their support and cooperation in implementing this initiative.”
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