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.
]]>BASSETERRE, St. Kitts, December 17, 2020 (Press Unit in the Office of the Prime Minister) – With the effects of the COVID-19 pandemic expected to spill over into the year, the Government of St. Kitts and Nevis has taken the proactive decision to extend nine of the 17 measures outlined in its comprehensive $120-million stimulus package introduced in March of this year.
This was one of the major initiatives outlined by Prime Minister and Minister of Finance, Dr. the Honourable Timothy Harris, when he presented the tax-free 2021 Budget on Tuesday, December 15.
The nine stimulus interventions that were extended are:
In making the announcement, Prime Minister Harris stated that, “We believe, Mr. Speaker, that the extension of these measures would help to advance the recovery process and, most importantly it would extend important lifelines to affected families and businesses.”
The extension of these measures have been welcomed by the St. Kitts and Nevis Chamber of Industry and Commerce, with its President Mrs. Giselle Matthews stating that these will help to regenerate the Federation’s economy.
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BASSETERRE, St. Kitts, December 15, 2020 (Press Unit in the Office of the Prime Minister) – Prime Minister and Minister of Finance, Dr. the Honourable Timothy Harris today, Tuesday, December 15, laid the Draft Estimates for the year 2021 before the St. Kitts and Nevis National Assembly as part of the final stage of the annual Budgetary process.
The Draft Estimates allow for the financing of the activities of the State that will bring benefits to the people of St. Kitts and Nevis.
This was followed by the tabling of The Appropriation (2021) Bill, 2020, in which the Team Unity Government is seeking Parliamentary approval for a total of $867,919,842 million dollars for the provision of services for the financial year commencing 1st January, 2021 and ending on 31st December, 2021. Total recurrent, capital and net lending charges against the Consolidated Fund come to $770,136,053 and the total provided by law is $97,783,789.
In his highly anticipated Budget presentation, delivered under the theme “Fortitude During the Pandemic: Resilience, Recovery and Transformation,” Prime Minister Harris said his administration has been careful over the last five years not to impose any new taxes on the people of the 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. Indeed, far from new taxes we have been subtracting, reducing and removing extant taxes. For example, we removed the onerous VAT from food, medicine and educational supplies in 2015…and in the 2021 Budget we have extended the reduction on the applicable rate of corporate income tax and unincorporated tax, reducing them by a significant 24 percent and 50 percent respectively,” Dr. Harris said.
The prime minister continued, “At a time when we could reasonably be asking for shared sacrifices for the greater collective national good by imposing new taxes as some countries have done, my Government prefers to waive them or waive some of them, apply moratoria and reduce others all to help our people and registered businesses successfully overcome the challenges of COVID-19.”
Looking ahead, Prime Minister Harris said his Government is encouraged by the positive economic projections for the Federation in 2021, notwithstanding the significant challenges associated with the ongoing pandemic.
“During the first quarter of 2020 the economy grew by just over 2 percent. The outturn was underpinned by positive growth in agriculture, financial services, transport, storage and communication, wholesale, retail and construction and even tourism was growing in the first quarter of 2020. Then COVID-19 happened and everything else took a nosedive. Our statistics department estimates that the economy of St. Kitts and Nevis is likely to contract by 12.5 percent for 2020. These estimates also project that the economy will rebound in 2021 with a positive growth rate of about 5 percent. These estimates of positive growth rate for St. Kitts and Nevis are broadly consistent in terms of direction with estimates forecast by the ECCB which projects a 6.4 percent growth for St. Kitts and Nevis and the IMF which projects an 8 percent growth for St. Kitts and Nevis,” the prime minister said.
Tuesday’s Budget presentation came during a special Sitting of the National Assembly held at the St. Kitts Marriott Resort Ballroom to accommodate the large number of persons in attendance, while adhering to the strict COVID-19 regulation of physical distancing.
The budget debate will continue on Wednesday, December 16, 2020, at the National Assembly Chambers, Government Headquarters, Basseterre.
]]>Basseterre, St. Kitts, December 02, 2020 (SKNIS): Prime Minister Dr. the Honourable Timothy Harris has called for discipline on VAT Days and has urged shoppers and suppliers of goods and services to practice physical distancing, to wear masks, and to exercise good hand hygiene.
Prime Minister Harris was at the time speaking at his monthly press conference on December 01, 2020. He said that as usual, the security forces will be on full alert to maintain law and order.
“We really want to have the best behaviour on VAT Day,” he said. “The overcrowding, the rushing, and all those ill-advised behaviour will not be encouraged.”
The Prime Minister asked suppliers of goods and services to put the requisite protocols in place to ensure good order is maintained at the premises.
“It can be done. A good model had been exercised by TDC recently at one of their sales. They were able to manage that activity by involving the security forces,” he said. “The security forces stand ready to assist any business place in making the appropriate determinations to ensure that all will go well.”
In order to accommodate VAT Day Sales, the Government will pay its salaries on Thursday, December 17, 2020, said the Prime Minister.
About 1,200 non-establishment workers will also receive their honorarium on December 17, 2020.
“Some time ago, the honorarium was discontinued by the former administration and the wild promise that their situation would be regularized,” he said. “Having taken note of the injustice to that category of government employees, we are determined until their situation was regularized we will pay them the honorarium, which I gather is about two percent of their annual accumulative wages.”
]]>NIA CHARLESTOWN NEVIS (November 13, 2020) — Hon. Mark Brantley, Premier and Minister of Finance in the Nevis Island Administration (NIA), is hopeful that the two discounted value added tax (VAT) rate days in December will help to give an economic boost to businesses on the island.
Dr. the Hon. Timothy Harris, Prime Minister of St. Kitts and Nevis, announced on November 10, 2020, that the discounted VAT rate days for 2020 will be December 18 and 19.
Commenting on the announcement, Premier Brantley said “The intention is to spur some much-needed economic activity during this time as we seek to restart the economy post COVID. We are hopeful that residents will take advantage of the concessions and save significantly.”
On discounted VAT rate days the 17 percent VAT on tangible items is reduced to five percent for consumers shopping on those days. The tax concession is not applicable on services, and only businesses in good standing with the Inland Revenue Department can apply to participate.
On December 18 and 19 VAT will be exempt on the first $50,000 for vehicle purchases. The standard 17 per cent VAT is applicable thereafter.
During the month of December consumers will also be able to benefit from the annual duty-free concession on non-commercial imports of up to 400 pounds in weight or EC $540 of the value of the goods.
]]>BASSETERRE, St. Kitts, October 21, 2020 (Press Unit in the Office of the Prime Minister) – After much consideration, the St. Kitts and Nevis Cabinet has decided to grant one Discounted VAT (Value Added Tax) Rate Day for 2020 in an attempt to boost consumer spending during the busy Christmas season.
The announcement was made by Prime Minister and Minister of Finance, Dr. the Honourable Timothy Harris, when he addressed the nation during the Tuesday, October 20 edition of Leadership Matters.
“Yesterday (Monday, October 19) we determined that for [2020] the Government of St. Kitts and Nevis will accord one day designated as VAT Day. On that day, as is the norm, the VAT payable on goods will be at 5 percent, so it is a special day in which the VAT rate is discounted and it covers a range of items,” Prime Minister Harris said.
On the Discounted VAT Rate Day, 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.
The honourable prime minister said further discussions will be held with the leadership of the St. Kitts and Nevis Chamber of Industry and Commerce to finalize the logistics for this year’s VAT Day, including the definitive day when it will be held.
Moreover, Prime Minister Harris said citizens and residents can expect some of the usual concessions on certain purchases during the Christmas/Carnival season.
Dr. Harris added, “The Cabinet yesterday in fact agreed to assist persons in having a better December than it would have otherwise been, and so the usual concessions on imports into the country are now available for the upcoming December season.”
In recent years, packages of foodstuff were allowed free of duty and taxes for the first 400 pounds. Gift packages and the passenger allowance up to a threshold valued at USD$200 were also allowed free of duty and taxes.
]]>Basseterre, St. Kitts, October 07, 2020 (SKNIS): The Cabinet of St. Kitts and Nevis is expected to begin discussions on the Discounted VAT (Value Added Tax) Rate period for 2020. A discounted rate from the 17 percent VAT is typically offered in December to boost consumer spending during the Christmas and Carnival season.
“We will give it some consideration,” said Prime Minister Dr. the Honourable Timothy Harris in response to a question by a caller during the October 06, 2020, edition of Leadership Matters.
Policymakers have been focused on dealing with the ongoing economic and social fallout of the COVID-19 global pandemic. October is a key month for St. Kitts and Nevis as the borders are scheduled to reopen in a phased way to regional and international travellers since closing seven months ago.
However, the prime minister said that in fairness to the public, who have become accustomed to the seasonal stimulus measure, he will allow formal discussions on a reduced VAT rate at the next Cabinet meeting slated for Monday (October 12).
“But I want to advise that we are in a difficult time where cash flows are limited and therefore the kind of benefits that we would have offered in a season of high inflows would not normally and could not be prudently be made available,” Dr. Harris stated.
St. Kitts and Nevis enjoyed two Discounted VAT Rate Days in 2019. The VAT Rate offered on December 13 and 21 last year was five percent.
]]>Basseterre, St. Kitts, August 19, 2020 (SKNIS): As St. Kitts and Nevis begins the process of reopening, Edward Gift, Comptroller of Inland Revenue Department (IRD) said that the Ministry of Finance and the IRD focused on several risks to its operations, the economy, and its customers, and as such, developed plans to confront the major challenges.
One of those plans is the management of IRD’s front operations during peak times in light of the ongoing social distancing measures.
“The Department places the safety of its customers and staff as its top priority and continued social distancing measures are to protect all of us,’” said Mr. Gift during his appearance on the August 18 edition of ‘Leadership Matters’, a virtual forum on ZIZ TV. “Customers to the department are reminded that they may experience delays when completing face-to-face transactions at peak periods and are encouraged to utilize our online services and avoid the lines.”
Another important measure deals directly with taxpayers’ behaviour in terms of filing and payments.
“The department is closely monitoring taxpayer filing and payments behaviour to identify emerging trends and compliance risk. In the context of this recovery, many businesses have been negatively impacted while others have benefited,” he said. “The department will continue to monitor taxpayer patterns to ensure that some taxpayers are not abusing stimulus measures and using the crisis to avoid payment of taxes.
Mr. Gift noted that the department has been examining trends and findings revealed that for the period 2017-2019, the average compliance rate for VAT filings was around 96 percent, while the VAT compliance rate for July 2020 fell to 51 percent.
“The department has been actively engaged in the process of communicating the government’s commitment to helping taxpayers meet their obligations as they restore their businesses. We want to remind business owners of the importance of filing during this period,” he said. “Although your business may have recorded a reduction in sales you are still required to file under the tax laws and avoid the additional cost of late penalties. Businesses that may have temporarily closed for some reason are asked again to avoid this additional cost of late filing by simply applying to the Inland Revenue Department for inactivity period,” he added.
The Comptroller reiterated that the department would be examining returns for taxpayers to ensure that persons are not taking advantage of the stimulus package measures.
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