Removal of VAT from some food items, reduction in customs charge and fuel surcharge included in UNITY government economic relief plan
Basseterre, St.Kitts (July 15th 2013) -- Leader of the People’s Action Movement Hon. Shawn K. Richards announced to nationals attending the party’s UNITY Townhall meeting in the Bronx that one of the issues on top of the agenda in the new and historic UNITY government that will be installed after the next General Election is immediate economic relief to the people of the federation.
Richards assured the huge audience at the St/Lukes Episcopal Church Hall that PAM as part of a Unity Government will ensure that the overwhelming hardships being faced by the people of the country will be a urgently addressed,. Particular attention he assured will be paid to to the Value Added Tax, (VAT) and the high cost of electricity which is the source of much of the financial problems for poor people and many local businesses.
The Constituency #5 Parliamentary Representative said since VAT was introduced in 2010, it has remained a subject of much concern for the people, including those in the middle class.
Richards reminded the audience, “Just before the last election, the People’s Action Movement informed the people that the government was secretly planning to introduce a new tax that would increase the cost of EVERY THING in the country. It was denied! But 11 months after, the people were slammed with a massive 17% Value Added Tax, (VAT). This has added to the woes of the people.
VAT has increased food, school fees, furniture, house rent, building supplies, medicines, the price of land, and when they introduced it, they even placed it on chalk. Yes chalk, the same chalk used to teach our children. Were it not for PAM who argued against it, they would have never removed it. While they put VAT on medicines and food, last week they removed it from gambling in the horse racing sector. Can you imagine that? VAT on food and medicines for the elderly, but removing it from horse racing.”
Richards went further when he charged, “And the worse of it all…even dead people have to pay VAT. The same 17% tax applies to funeral costs and is creating much hardship for poor families struggling to bury their loved ones.”
The package of relief promised by Richards is to include:
- A 25% reduction on the Sur Charge for Electricity
- Removal of the 6% Customs Service Charge on electricity
- No disconnections of supply on public holidays and weekends as is being done today
- Allowing consumers to enter into affordable payment plans to reduce and pay off their outstanding arrears
- And debt forgiveness on all personal arrears owed to the government before 1st August, 2012, when the electricity department became SKELEC
In terms of the VAT, we intend to ensure:
- That this tax be removed from selected food items
- Removed from medicines especially those much needed by the poor, and those with chronic illnesses, such as diabetes and hypertension
The measures, said Richards, are just part of the new, creative, innovative and caring policies that the government of national UNITY would hope to deliver to residents after the next General Elections
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