BASSETERRE, St. Kitts - THE Federal Government of St. Kitts and Nevis has declared two days in the month of December discount Value Added Tax (VAT) Rate Days with a reduction from 17 percent to five on goods.
The discounted VAT Rate was applied last Friday (Dec. 14) and today (Dec. 20).
Thousands of people are flocking the stores of downtown Basseterre to take advantage of the five percent VAT Day.
Many stores have extended their opening hours to accommodate their customers and patrons are also being treated to unexpected bonuses, as some business entities are offering additional discounts of their own.
SKNVibes took to the streets of Basseterre, both last Friday and today, to get a feel of the shopping frenzy which is expected with any sale.
This media house observed a large number of persons busying themselves around town to get their shopping done.
The shoes, clothing and grocery stores are filled with shoppers, some to the extent that persons are having difficulty manoeuvring through the dense crowds.
Speaking with a number of individuals, most of them indicated that they are overly excited about the five percent VAT, noting that they are also readily seeing less totals at the cash register.
There were those who expressed their gratitude as the reduction paved the way for them to be able to purchase more items. There were those who decided to 'stick to their budget' and chose not to over-shop.
Some individuals did not participate because, as they claimed, the stores are far too congested and they do not have the time to wait in line, while others stated that they "have no money".
A lady by the name of Brenda told this media house that she was definitely taking advantage of the reduced VAT Day as there were a number of items she "was cooping to buy on sale".
She disclosed that clothing and shoes were not a bother to her, but her focus would be on school supplies for her two children, household supplies, "depending on the price", and groceries.
She also disclosed that, although excited about the five percent VAT, she was not too impressed as the prices which still seemed to be the same when paid for.
A Defence Force Private explained that he would not be participating in the VAT reduction day because "you need money to that", which he said he did not have to spare.
The soldier explained that he was of the view that it is a great thing the government has done considering the condition of the economy, but noted that opportunities such as this also causes one to use more funds.
He took the opportunity to advise shoppers to spend wisely and not go beyond their limits.
An elderly lady who asked to be called "Mom" said that she was only interested in purchasing a few items today, but was "practically forced out of the stores" by the bulk of shoppers trying to get around.
"An old woman like me has no call in young people thing. The stores are so filled with people that it is not easy to move around," she explained.
This media house also spoke with one Mr. Richards, who said that he purchased a number of items but saw no difference in price.
"It seem like they [stores] carried up their price so that when the VAT comes off they would still be making the same amount of money, because I bought a couple if things and saw no change in price. These are things that I buy on a regular basis so I know what their prices usually are," he voiced.
Mr. Richards said he bought, among other things, a pair of shoes and a few grocery items.
A young lady who goes by the name of ‘Diddy’ said that she was just waiting for her wage to be accessible so that she could go on a shopping frenzy.
Diddy explained that she is planning a large Christmas lunch and would be heading to the grocery stores to stock up on food.
"I plan to be Betty Crocker this weekend and Christmas Day. So as soon as my pay come through I am going straight to RAMS, C&C and up to Valu Mart to stock up on my food. I am not worrying about clothes and shoes, because food is what makes my purse empty," Diddy explained.
A number of persons who 'sat out' the five percent VAT reduction days with regards to major shopping did indicate that they saw a price reduction in the few items they purchased.
Last year, the Federation's Government had announced that after consultation with the St. Kitts-Nevis Chamber of Industry and Commerce, an agreement was reach by which VAT would be reduced from 17 percent to seven on goods on December 22, 2011, which was dubbed "Black Thursday".
Hundreds of shoppers wasted no time in taking advantage of the reduced VAT days as they flocked the stores of St. Kitts and Nevis to purchase groceries and clothing, among a host of other items, at discounted rates.
