Minister of Information, Sen. the Hon. Nigel Carty said Friday that Cabinet has approved that VAT shall be reduced from 17% to 5% on Thursday December 5th and on Thursday December 19, 2013.
“There will be NO discounted VAT on guns and ammunition, alcohol, vehicles and cigarettes. There will be NO discounted VAT on the sale of services such as legal fees, tickets for lottery and raffles, top-ups and phone cards, etc. That is to say, the VAT will be discounted for goods ONLY,” said Mr. Carty.
He further stated that the business persons not in good standing with regard to their taxes will not be able to participate in the discounted VAT day and are asked to regularize their status with the Inland Revenue Department and the Customs Department.
“This decision to reduce the VAT to 5% for December 5th and December 19th is taken in accordance with Sections 26 (1) and 26(2) of the VAT Act of 2010,” Mr. Carty pointed out.
He noted that with the introduction of VAT (or the Value-Added Tax) in 2010, the Government of St. Kitts and Nevis has sought every year thereafter to provide a genuine incentive for both the consuming public and the business sector by designating discounted VAT days in the month of December.
“The discounted VAT days provide an opportunity as we near Christmas and the festive season for consumers of all strata of our society to purchase a range of goods at hugely discounted rates on the value-added tax. This, we believe will provide an opportunity for citizens and residents to make their usual extraordinary provisions for the Christmas and carnival – related activities,” said Mr. Carty.
He further stated that this measure is applied to both local purchases and imports from abroad.
“Over the preceding years, an average of 108 local businesses have taken part in the discounted VAT day and have benefited greatly from the increased consumer activity as average daily sales of EC$13 Million have been registered,” the Information Minister disclosed.
Press release from Erasmus Wiliams(CUOPM)