BASSETERRE, St. Kitts - SEVERAL local business entities are crying out over the current environment within which they are operating.
Several owners and managers who spoke with SKNVibes Business explained that they are unhappy with the way businesses are made to work in the Federation, especially when it comes to them paying Value Added Tax (VAT).
“The problem that has always been with us is the VAT problem that the government implemented, which is right on the mark and all prices have jumped,” was the comment made by a certain businessman.
Speaking under condition of anonymity, one clothing and jewellery store owner explained that his business has to pay VAT on every item, even though they do not charge it on some of the said items in the store.
Another one, on Port Zante, told this agency that he does not charge VAT on his sales to local customers, but, rather, that cost is borne by his company when it is being remitted to the relevant authorities.
He noted that it would only scare the customers away when they see a high price.
“Our expenses are high now! Surprisingly, our electricity bills, phone bills, rent and everything have since jumped because of the VAT, and that really is the only issue that we have. We have not had a proper response from the government and it’s a whole different issue. It’s like they can’t do much on this,” he said
He, like all others, have said that this has “fallen on deaf ears” and so all companies now have to work along with the policies that the government has implemented.
The Valued Added Tax system was instituted in November 2010 to the outcry of many businesses and citizens alike in the Federation.
The implementation of VAT saw eight existing taxes being replaced by one common tax: Consumption Tax, Hotel and Restaurant Tax, Cable TV Tax, Traders Tax, Vehicle Rental Levy, Export and Rum Duty, Telecommunications Levy (IDD Calls) and Parcel Tax are the replaced taxes.
VAT currently stands at 17 percent on the cost price of products. However, the government, over the years since its implementation, has instituted VAT days.
