BASSETERRE, St. Kitts -- THE Government has confirmed that the Federation will observe its first VAT Reduced Day in April, following approval from the Cabinet.
This confirmation was issued this morning by the Office of the Prime Minister through a press statement from Press Secretary, Adelcia Connor-Ferlance.
“On April 12th, 2024, Saint Kitts and Nevis will observe an 'Easter' Discounted Value Added Tax (VAT) Rate Day, wherein all VAT-registered businesses will charge VAT at the reduced rate of five percent (5%) 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 17% to 5%, the government aims to alleviate financial burdens on citizens and ultimately bolster economic growth and stability.," she stated in today's media release.
The Office of the Prime Minister (OPM) has outlined several guidelines to ensure the effectiveness and fairness of this initiative:
All tangible items currently subjected to 17% VAT will qualify for the discounted rate of 5% on Discounted VAT Rate Day.
Eligible items must be readily available for sale and immediately issued or delivered to customers on Discounted VAT Rate Day. Orders for items not in stock will not be eligible.
Excluded from the discount are vehicles, firearms, ammunition, cigarettes, and alcoholic beverages.
This initiative underscores the government's commitment to cultivating a conducive economic environment and enhancing the welfare of its citizens.
Businesses are strongly encouraged to actively participate in Discounted VAT Rate Day, seizing the opportunity to attract customers and contribute to the nation's economic revitalization efforts.
