NIA CHARLESTOWN, NEVIS (December 23, 2025) - Premier of Nevis, the Honourable Mark Brantley, is urging the Federal Government to undertake a comprehensive review of key taxes, including the Value Added Tax (VAT) and Customs Duty tariffs, arguing that strategic tax reform could stimulate greater local economic activity and growth.
Premier Brantley, who is also Leader of the Federal Opposition and Member of Parliament for Nevis 9, made the appeal during his response to the 2026 Federal Budget Address delivered by Prime Minister and Minister of Finance, the Honourable Dr. Terrance Drew, in the National Assembly.
He said discussions with members of the business community point to a growing consensus that the time is right for serious tax reform.
“I say that we should look at tax reform because there has been a pattern that has emerged that every time there is a VAT Relief Day the business places are inundated with customers. I’m urging the government to look at the possibility of whether instead of these days each year for VAT relief we ought not now look and see whether we can relax the percentage of VAT from 17 percent to a smaller number.”
He suggested that policymakers consider the feasibility of a permanent reduction in the VAT rate, noting, “the number that attracts itself to me is 10 percent,” while acknowledging that such a target would take time to achieve.
As a practical first step, Premier Brantley proposed that the government’s financial team assess the impact of reducing VAT from 17 percent to even 13 percent.
Drawing on Nevis’ experience during a recent period of reduced VAT, he stated, “I can tell you that in Nevis we did not see any corresponding drop in receipts from VAT [during the six-month reduction] … it suggests to me that one- the economy is growing, but it also suggests two- that the lower rate led to greater consumption.”
He further noted that the current VAT rate is “one of the highest in the region” and argued that lowering it could help drive increased spending and economic expansion. While emphasizing that he is not an economist, Premier Brantley said he believes the country has the expertise to properly evaluate the issue.
“I believe we have talent within the Chamber of Industry and Commerce and the Ministry of Finance that can look at this and come up with a solution,” he said.
Premier Brantley also called for a re-examination of the annual Christmas duty-free concession, suggesting that a more permanent and equitable system be considered.
“Elsewhere in the Caribbean… they have a minimum threshold and they grant you that all year round, and that is especially helpful for people who are of a lower income bracket,” he explained, contrasting that approach with the seasonal surge created by once-a-year exemptions.
He concluded by stressing the importance of innovative thinking in economic policy, noting that such measures are worthwhile considerations as the country examines ways to develop and grow the economy.
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