Second Discounted VAT Rate Day Added In December To Further Stimulate Economic Activity
BASSETERRE, St. Kitts, November 10, 2020 (Press Unit in the Office of the Prime Minister) – Citizens and residents received more good news this evening (Tuesday, November 10), when Prime Minister Dr. the Honourable Timothy Harris announced that his Team Unity Cabinet has consented to extend the Discounted VAT Rate period in December to two days.
Prime Minister Harris made the announcement during tonight’s edition of Leadership Matters, a highly popular virtual series forum.
“The Government, based on representation and consultation with the Chamber, decided on Monday that we would extend VAT Day which was originally carded for Friday, 18th December by another day to Saturday, 19th. We hope that the additional day will help to further stimulate economic activity, assist small businesses with improved sales and help spread economic activity over those two days,” the prime minister said.
Prime Minister Harris noted that the primary reason behind the Cabinet’s decision to add a second VAT Day is to minimize overcrowding on any particular day.
The prime minister added, “We hope by extending the VAT Day offerings to Saturday we could less congestion on the Friday and on the Saturday and behaviours more conducive to the COVID-19 environment and we expect businesses…to observe COVID-19 protocols regarding physical distancing, the mask wearing, etc.”
On the Discounted VAT Rate Days, all tangible items currently subject to 17% VAT qualify for the discount on “VAT Day.” Eligible items must also be available for sale and immediate issuance or delivery to the customer on Discounted VAT Rate Day. Orders for items that are not in stock do not qualify. For vehicle purchases, VAT is exempt on the first $50,000.00, with VAT at the standard 17% charged thereafter.
Additionally, throughout the entire month of December (1st to 31st) persons will benefit from approved duty concessions on food, gift packages, and passenger allowances.
Gift packages of foodstuff up to 400 pounds in weight will be allowed free of duty and taxes, and travelers and non-commercial importers will receive a duty-free allowance of EC$540 or US$200 off the Cost, Insurance and Freight (CIF) value of goods.