BASSETERRE, St. Kitts - CITIZENS and residents in the twin-island Federation of St. Kitts and Nevis will be benefitting from two reduced Value Added Tax (VAT) rate days in December.
In his latest press conference, Prime Minister Dr. the Hon. Timothy Harris announced that this year’s reduced VAT-days would be on Saturday December 14 and 21.
He told reporters that the days were agreed to by members of the Chamber of Industry and Commerce and the Government of St. Kitts and Nevis.
“And even when we would have done so, our country remains in surplus,” the PM added.
Following the implementation of the VAT, over the years the reduced rate days have come as a Christmas gift to those living and residing in the Federation.
Generally, the Government reduced the tax from 17 percent to five percent on the reduced days, which has seen many flocking to supermarkets to make their Christmas purchases.
This year, the Government has once again reduced the tax to five percent.
“I can advise that Cabinet has approved that businesses be allowed to charge VAT at a rate of five percent on the sale of goods instead of the usual 17 percent VAT. Of course, this will be on the designated VAT days.”
According to Dr. Harris, in the case of motor vehicles, no VAT would be charged on the first $50,000 of the cost of a vehicle.
He further explained that anything beyond the first $50,000 figure would be subjected to the full 17 percent amount.
“This, in our view, is a major boost to spur vehicle ownership in the country and allow our people the convenience of better quality of life,” Dr. Harris said.
The PM also spoke to gift packages and duties.
“Currently, the packages enjoyed by non-commercial importers and travellers, gift packages of food stuff are allowed the first 66 pounds free of duties and taxes. Travellers receive duty free allowance of EC$400 off the CIF value.
“Our caring Team Unity Government has approved the following for implementation during the whole month of December; that is from the 1st to the 31st December 2019. The gift packages for which now been allowed, 66 pounds free of duties and taxes, we have now increased that almost sevenfold to 400 pounds free of duties and taxes.
“The travellers who would have received duty free allowance of $440 off the CIF value will, during December, received a duty free allowance of $540 off the CIF Value.”