BASSETERRE, St. Kitts – RELIEF has come to the pockets of many citizens and residents of St. Kitts and Nevis, as the Labour Government has removed the Value Added Tax (VAT) on a number of essential items and also on their importation by merchants.
This announcement was made to the nation yesterday (Dec. 3) by Prime Minister the Rt. Hon. Dr. Denzil Douglas during his Monthly Press Conference held in the Parliamentary Lounge of Government Headquarters on Church Street, Basseterre.
Dr. Douglas reminded the nation that the VAT was introduced to the Federation in 2010, which some 150 nations worldwide had already done, to stabilise the economy and that it has contributed significantly to the very positive performance ratings that St. Kitts and Nevis has since received.
“The Government is now in a position to remove the VAT from certain items, and I am pleased to share with you today the ‘Family Shopping List of Goods’ on which, from today forward, there will be zero VAT paid,” he said.
The Prime Minister said that the ‘Family Shopping List of Goods’ is divided into three categories - Health and Hygiene, Balanced Diet, Childcare and Education.
“The health and hygiene items that will be zero VAT-rated are: Detergents; Bleach; Disinfectant; Adult Pampers; Sanitary Napkins; Bathroom Tissue; Shampoo; Mouthwash; Body Lotion; Deodorant; Toothpaste; Soap; Insecticides; Rodenticides; and Mosquito Coils.
“Significantly, medicines in St. Kitts and Nevis are to be zero-rated for VAT. In other words, no VAT should ever be charged on medicines. Yet persons have reported that some pharmacists and other retailers have been charging VAT on medicines. This should not be! And any person who is charged VAT on medicines should both strongly protest to the retailer involved as well as lodge a complaint to the Ministry of Consumer Affairs,” Dr. Douglas said.
He pointed out that the list of items covers a much wider range of items, with savings for all individuals as the VAT would be removed from the import duties of those items.
Dr. Douglas said that the zero VAT-rated items for the Balanced Diet are: Peas, Beans and other Legumes; Coconut Oil, Corn Oil; Canola Oil; Sunflower Oil; Olive Oil; Turkey; Pork; Oxtail; Sausages; Mutton; Lamb; Beef; Cereals; Powdered Drinks; fresh or frozen Chicken; fresh, chilled, or frozen Hams, shoulders and cuts with bone; Pigtails, ears, and snout; canned Salmon, Mackerel, Herring, Sardines and Saltfish; Cheese; Vegetable Oils; Margarine; Shortening; canned Sausages; canned Corned Beef; Sardinella and Brisling or Sprats; Tomato Ketchup; Tuna; Pasta; Skipjack; and Bonito.
However, a brochure handed out to members of the media included Cereals, Grapes, Apples, Kiwi, Pears, Cornmeal and Corn Flour.
He noted that the zero-rated items for Childcare and Education are Fruits and Vegetables, Infant Juices, Baby Diapers and Exercise Books.
Prime Minister Douglas intoned that the concessions would be of direct benefit to all in the twin-island Federation and “now that our economy has stabilised the Government is very pleased to be in a position to provide them”.
According to Dr. Douglas, the concessions went into effect from yesterday.
Meanwhile, Dr. Douglas said that the Government has provided duty and tax-free access for all gift packages and foodstuff up to 400 pounds leading up to the Christmas season.
He declared that anyone who leaves the Federation and returns with overseas purchases would be allowed duty-free access up to US$200.
“These concessions will come into effect immediately and will be in effect until December 31st 2014,” the Prime Minister added.
