BASSETERRE, St. Kitts - SEEMINGLY an answer to the call made by the People's Action Movement Candidate for Constituency Two, Jonel Powell, to have vehicles included in the reduced Value Added Tax (VAT) Days, Prime Minister the Rt. Hon. Dr. Denzil L. Douglas has decided to make it possible.
In his 2014 Budget Presentation today (Dec. 10), Prime Minister Douglas announced that on the remaining reduced VAT Day vehicles would be sold at five percent tax.
Dr. Douglas also announced that the second reduced VAT Day would be on December 20 instead of December 19 as previously stated.
"As you are aware, we have publicly communicated the rather generous decision to again sponsor two days of reduced VAT. The days indicated were 5th December and 20th December 2013. Today, I am taking this decision further and pronounce that vehicles will be included as an item subject to a five percent reduced VAT on 20th December 2013."
PM Douglas also called on businesses to offer additional discounts to consumers to "sweeten the deal" and wished them a successful year in 2014.
"I would also like to invite the businesses that stand to benefit from increased volumes of sales to join the government and sweeten the deal for their customers by offering additional discounts equal or above the rates offered by the government. We wish the business community a successful and profitable 2013 and look forward to a vibrant year of business in 2014."
Following the announcement by Cabinet on Friday (Nov. 29) that the VAT would be reduced from 17 percent to five percent for two days in December, Powell issued a statement calling on the Douglas-led government to reconsider both the days on which VAT would be reduced and also the removal of vehicles from the qualifying list.
Powell made the call for:
"1. Include vehicles as approved items for purchase at reduced VAT rates on the allocated days; and
"2. Move the allocated days for reduced VAT to Fridays so that more persons, in particular weekly paid workers, may have an opportunity to take advantage of the incentive."
With the announcement made today, it appears that the government has heard and abided as the second day for the reduction of VAT has been moved from Thursday, December 19 to Friday December 20 and vehicles has been included in the VAT reduction.
