BASSETERRE, St. Kitts - IN fulfillment of one of Team Unity’s election campaign promises, Prime Minister the Hon. Dr. Timothy S. Harris announced last evening (Mar. 25) that as of next month (April 2015), Value Added Tax (VAT) would be removed from all food, funeral expenses and medicine.
The announcement was made while giving an address to the nation via ZIZ Television and Radio and other radio stations.
In the lead up to the announcement, Dr. Harris expressed that the high rate of VAT, which was imposed in 2010, caused poverty to worsen.
“Team Unity promised relief from the burdensome taxes and the high cost of living. The people of St. Kitts and Nevis suffered badly from the imposition of the highest introductory rate of VAT in the Caribbean at 17 percent. Many were hardly able to buy their food, small and medium-sized businesses had to close as their cost of doing business was too high. Single mothers had it hard to make ends meet. Poverty was exacerbated.”
He said low taxes encourage economic growth.
“We are committed to fight poverty and to give small and medium-sized enterprises the support which they need. I am pleased to report that we are keeping our promises; after all a promise only has value if it is kept. We believe that the road to prosperity means money in your pockets to save, to spend or to invest. Lastly, low taxes are good for economic growth.”
The Prime Minister informed that effective April 7, 2015, VAT would be removed from food items, medicines and funeral expenses in St. Kitts and Nevis.
The change has been announced little more than one month after the Team Unity Government began leading the country.
Prime Minister Harris said the relief would stimulate economic activity which would create employment opportunities.
“Team Unity promises a better way. We promise prosperity for all and this initiative represents a fresh start on that new journey….Our priority will always be to ensure prosperity for all.”
Some relief was given last year as was announced by the leader of the former administration, the Rt. Hon. Dr. Denzil L. Douglas, where several items listed in the “Family Shopping List of Goods” were zero-vatted.
While on the campaign trail, Team Unity, which Dr. Harris leads, promised that VAT would also be removed from school supplies. However, that was not mentioned in his address.
