The St. Kitts-Nevis government has announced the approval of an initiative aimed at providing financial relief to citizens and stimulating economic activity during the Easter season.
The government said that on April 12, the Twin Island Federation will observe an ‘Easter’ Discounted Value Added Tax (VAT) Rate Day” where all VAT-registered businesses will charge the VAT at the reduced rate of five per cent on the sale of goods.
“This decision marks a significant step in the government’s continued support of both consumers and businesses during a time traditionally associated with increased spending.
“By slashing the VAT rate from the standard 1 per cent to five per cent, the government aims to alleviate financial burdens on citizens and ultimately bolster economic growth and stability,” the government said in a statement.
It said to ensure the effectiveness and fairness of this initiative, certain guidelines have been established and that all tangible items currently subject to 17 per cent VAT will qualify for the discounted rate of five per cent on Discounted VAT Rate Day.
It said eligible items must be readily available for sale and immediate issuance or delivery to customers on Discounted VAT Rate Day. Orders for items not in stock will not qualify and that vehicles, guns, ammunition, cigarettes, and alcoholic beverages are excluded from the discount.
“This initiative underscores the government’s commitment to fostering a conducive economic environment and enhancing the welfare of its citizens.
“Businesses are encouraged to actively participate in Discounted VAT Rate Day, seizing the opportunity to attract customers and contribute to the nation’s economic revitalization efforts<’ the statement said with government extending “its gratitude to all stakeholders for their support and cooperation in implementing this initiative”.
BASSETERRE, St. Kitts, Mar 20, CMC –
CMC/fg/ir/2024
