BASSETERRE, St. Kitts – ALMOST three months following the swearing-in of the St. Kitts-Nevis Labour Party to government, Prime Minister and Leader of the party Hon. Dr. Denzil Douglas has announced his top national priorities include tax reform and debt reduction.
Delivering his feature address at yesterday’s (May 3) Labour Day at the Patsy Allers Playing Field, Dr. Douglas listed his priorities for this his fourth term in government, naming national security, tax reform, debt reduction and electoral reform as the top four.
“Priority number two: reforming our tax system to ensure that it is supportive of our economic and social agenda. Our local economy has made significant strides. Look how far we have come away from sugar five years ago.... In an effort to deepen the transformation process, your government has set out on a path of tax reform among other things,” Douglas said.
When economic crisis hit the Federation in late 2008, it became clear that the government had to make significant changes to the nation’s financial sector, not only to protect it from future economic hard times but also to ensure that the nation maintains a healthy financial position.
Tax reform, beginning with the introduction of a Value Added Tax (VAT), was announced as the government’s first step in that direction. By November of this year, the new tax should be implemented and, according to Douglas, will create a more efficient tax system defined by simplicity and equity.
“The first element of this process is the introduction of the Value Added Tax which will eliminate some 12 nuisance taxes.... This very bold step is necessary in the development of our local economy. I therefore urge all businesses big and small and all consumers... to become familiar with this new system,” he added.
Debt reduction also made it to Douglas’ top priorities and he announced the appointment of a debt strategy committee. Though the names of the members were not disclosed, Douglas informed that the body would advise him on further measures to address the issue in the long term.
This comes at a time when the Ministry of Finance has moved to strengthen its own human resource capacity with the recent appointment of a consultant and technical officials.
“We will move to adopt a three phase approach with the reduction of the rate of increase in the debt, reduction in absolute terms of the debt and a period of consolidation for the debt which will enable us to effectively move to bring this challenge well under our control.
“I want to however advise that the reduction of the national debt is indeed a process and will not be a fly by night one as some may be thinking,” Douglas announced to a sea of workers gathered for the holiday event.
No specific timelines were given for the three phase approach to debt reduction as the nation’s EC $ 2.54 billion burden poses a potential threat to further development.
