BASSETERRE, St. Kitts – PRIVATE SECTOR entities in St. Kitts and Nevis are expected to experience some relief as the Federation’s Prime Minister and Minister of Finance, the Rt. Hon. Dr. Denzil Douglas, announced a reduction in Corporate Income Tax for 2013.
Earlier today (Apr. 9) during his Budget Presentation, Dr. Douglas cited that the closing of clear tax loopholes has generated some fiscal flexibility.
“The second prong of our strategy focused on closing clear tax loopholes and modernizing selected sections of the current Income Tax Act. Mr. Speaker, I am now pleased to note that the closure of these tax loopholes has created some degree of fiscal space.
“Mr. Speaker, the question is, what should we do with this fiscal space that this strategy has created? Should we focus on providing more tax deductions or should we re-examine our tax rate for corporations which is said to be the highest in the OECS?”
Dr. Douglas declared that his government chose to amend the rate as it seeks to build partnerships with the private sector.
“As a caring government that listens well, that seeks out opportunities to build partnerships with the private sector where and when possible, I am very pleased to announce to this Honourable House and to the people of St. Kitts and Nevis that it is the intention of my government to adjust the rate of Corporate Income Tax from 35 percent to 33 percent.
“The new rate will be applied to taxes filed in respect of business activities occurring in 2013.”
He however announced that more information on this new measure would be given in further communication.
