Building Materials Incentive Programme to boost home ownership
The Government of St Kitts and Nevis are making Economic Stimulus Packages available for its citizens which include the Building Materials Incentive Programme to promote home ownership and has provided affordable housing for those who need.
Recognizing that there is also a substantial private home construction sector, the Government has announced a tax incentive programme for private home construction projects. Housing Minister, the Hon. Dr. Earl Asim Martin, recently piloted through the St. Kitts-Nevis Labour Party Cabinet, an 18-month tax holiday for taxes that would normally be charged on the purchase or importation of building materials for home construction projects.
The taxes exempted under the tax holiday for local home builders include all Import Duties (usually taxed at rates ranging from 5% to 25%) and Customs Service Charges (usually taxed at rates ranging from 6% to 12%). VAT is still payable. The exemption applies to the first EC$400,000 (US$150,000) of building materials (CIF if materials imported by self).
Procedure for citizens to utilize the BMIP:
1. Obtain and complete the “APPLICATION FOR DUTY-FREE CONCESSIONS ON BUILDING MATERIALS”.
2. Submit the completed form to Theresa Morris at the Ministry of Finance.
a. A certified copy of the Commencement Certificate issued by the Development Control and Planning Board
b. “Bill of Quantities” (list of the materials required for the construction, usually provided by your contractor)
3. Applications will take three to five working days to be processed by which time persons will know whether their application has been approved. If approved, a letter of approval will be sent to the person filing and to the Customs and Excise Department.
The concession applies to building materials purchased locally or imported by successful applicants. Successful applicants present their letter of approval to local merchants for the exemption.
For importation of building materials, citizens approved to participate in the BMIP can consult with the Customs and Excise Department at Bird Rock (467-1077/78) for further details related to importation and how the VAT is calculated and applied.
All applications to benefit from the BMIP should be made and all purchases/imports completed by December 31, 2012.