Six Consecutive Years Of No New Taxes By The Team Unity Administration
BASSETERRE, St. Kitts, December 18, 2020 (Press Unit in the Office of the Prime Minister) – The people-centered Team Unity Government of St. Kitts and Nevis this week continued what has become a longstanding tradition when Prime Minister Dr. the Honourable Timothy Harris presented his administration’s sixth consecutive tax-free budget.
The Team Unity Government was able to accomplish this feat, even during a time when all the world’s economy has been crippled by the ongoing novel coronavirus pandemic, thanks to the strong fiscal measures adopted over the last five years.
In presenting his sixth tax-free Budget on Tuesday, December 15, Prime Minister Harris said, “Mr. Speaker, the good news is that the Team Unity administration has been careful over the last five years not to impose any new taxes on the people of this Federation. This is a remarkable feat. For five years in a row, my Government would have managed this country, fulfilling our mandates and increasing the range of support to the social sectors including education, health, national security, the poor and indigent, our women headed households, and at-risk groups. We have done all these things and more without adding one new tax.”
The prime minister continued, “At a time when we could reasonably be asking for shared sacrifice for greater collective national good by imposing new taxes, my Government prefers to waive some of them, apply moratoria and reduce others, all to help our people and registered businesses successfully overcome the challenges of COVID-19.”
Rather, since assuming office, the Team Unity Government has made a concerted effort to remove and reduce a number of existing taxes.
“For example, we have removed the onerous VAT from food, medicine and educational supplies in 2015. You have heard in this Budget what we propose to do with respect to personal protective equipment of removing VAT and Duty. In our 2021Budget, we have extended the reduction on the applicable rate of Corporate Income Tax and Unincorporated Business Tax, reducing them by a significant 24 percent and 50 percent tax rate respectively,” Prime Minister Harris said.
Dr. Harris noted that through this initiative, St. Kitts and Nevis is now among countries in the region with the lowest corporate tax rates.