An official from the main private sector body in St. Kitts, the St Kitts and Nevis Chamber of Industry and Commerce, said the whole business community is extremely pleased with the success of the first ever REDUCED VAT DAY, indicating that they are certain that the reduction of the 17% VAT, to only 7%, helped tremendously to uplift the sales during the 24 hour period and that it would far exceed the VAT takings, that would have occurred if the special discount was not provided and if the full 17% was payable.
In other words, though the rate was lower, government is most certain to have made more money than they would have collected at the higher 17% rate, because spending would not have been as high.
The Chamber said its own survey indicates that business activity in Nevis was equal to, if not greater than it was around St Kitts, and the response of the consumers on both islands indeed reflects their approval of the joint incentives offered by Government and businesses on that day.
Patrons were also treated to unexpected bonuses as some business houses, even though not registered to participate in the REDUCED VAT DAY, offered their own discounts.
The Chamber took the opportunity on Friday, 23rd December, to thank the Prime Minister Dr. Denzil Douglas and his team from the Ministry of Finance, for meeting with them at short notice and acceding to the request of the business community for a stimulus package, which allows equal opportunity for all with the federation to participate on a level playing field.
The Chamber also congratulated the Officials of the VAT Office for speedily putting together all of the arrangements which have made the Reduced VAT Day easily manageable and workable.
The Chamber therefore extended its appreciation to all business houses for offering additional discounts and incentives which have helped to make the reduced VAT Day most attractive to all customers.