BASSETERRE, St. Kitts - TWO Fridays in December have been earmarked by the government of St. Kitts and Nevis as reduced VAT days for residents of the Federation.
Speaking on his weekly radio programme ‘Ask the Prime Minister’, St. Kitts and Nevis' Prime Minister the Rt. Hon. Dr. Denzil Douglas disclosed the dates for the reduced VAT days that were introduced annually since the VAT was implemented in 2010
“Christmas is not too far away and whenever Christmas is on the horizon we all start wondering how best we can manage the resources at our disposal.
“It is also true, however, that in recent years, because the Christmas Season is a season in which many individuals spend more than they normally would, the Government has authorised dramatic reductions in the Federation’s VAT rate on specially designated days.
“This year, the Government will be maintaining this tradition. And on Friday December 12th and Friday December 19th the VAT in St. Kitts and Nevis will be reduced to five percent.”
Earlier this year, President of the St. Kitts and Nevis Chamber of Industry and Commerce, Damion Hobson proposed that the Government adds a third VAT-free day this year and that his organisation was open to discussion on the matter.
“A reduction in the Value Added Tax delivered greater levels of revenue to Government in 48 hours, compared to weeks or months in some categories.
“This year, buoyed by the obvious success of last year, we recommend that this initiative be repeated, except that we are proposing three days instead of two; with good reason. We are prepared to jointly examine the rationale at your convenience, but I should suggest now that this formula is a ‘win-win’ for all three stakeholder groups - Government, consumers and businesses that qualify.”
He also highlighted some benefits of the VAT-free days.
“But the greatest benefit is that it keeps the spending here at home rather than providing injections to trade and commerce overseas. This also helps in the retention of jobs. There is a saying, ‘When the private sector does well, there is increased revenue for the public sector and, of course, when the private sector is hurting so too will the revenue streams of the government’.”
