BASSETERRE, St. Kitts - THE Government has brought forward one of the discounted VAT Rate Day from December 14 to 13 in order to facilitate those in the religious community.
In a statement late last evening (Nov. 5), it was confirmed that following consideration, Cabinet decided upon the change.
At his monthly press conference on Monday (Nov. 4), Prime Minister Dr. Timothy Harris announced that this year’s Discounted VAT Days would be held on December 14 and 21.
“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,” Dr. Harris noted.
In its statement yesterday, the Government indicated that “upon further consideration today, the Cabinet has agreed, after taking into account the beliefs and traditions of the devout and diverse religious community in St. Kitts and Nevis, that the first of the two announced Discounted VAT Rate dates will be changed from Saturday 14th, December to Friday 13th, December. The second date, Saturday 21st, December, remains the same.”
To facilitate the discounted days, the Government would be disbursing salaries to public servants on Friday, December 13.
Meanwhile, as part of the Discounted VAT-Rate Day, no tax will be charged on the first $50,000 of the cost of a vehicle, but anything above that amount will be subjected to the 17 percent amount.
The Prime Minister also spoke to gift packages and duties.
“Currently, the packages enjoyed by non-commercial importers and travelers, gift packages of foodstuff are allowed the first 66 pounds free of duties and taxes. Travelers receive a 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 travelers who would have received a duty-free allowance of $440 off the CIF value will, during December, receive a duty-free allowance of $540 off the CIF Value.”