The 12 taxes that VAT will replace have been disclosed
ST. KITTS, APRIL 21, 2010 (CUOPM) – VAT – Value Added Tax – will replace 12 existing taxes.
A number of goods will also be zero-rated to make goods most affordable to ordinary and low-income families.
Minister of Information, Sen. the Hon. Nigel Carty, in the Post-Cabinet Briefing list the twelve taxes that VAT will be replaced as follows – Consumption Tax, Hotel and Restaurant Tax, Cable TV Tax, Vehicle Rental Levy, Insurance Premium Tax, Export Duty, Public Entertainment Tax, Lotteries Tax Act, Gaming Machine Tax, Traders Tax, Telecommunications Levy (IDD Calls) and Parcel Tax.
He said milk, infant formula, diapers, rice, sugar, and certain medicines for chronic diseases such as hypertension, diabetes, and cardiovascular disease are among the basic goods and important supplies that will be zero-rated so that these goods are most affordable to ordinary and low-income families.
The Minister of Information disclosed that in addition, a number of transactions, such as the sale of real property attributable to a dwelling subject to stamp duty, may be exempt from the value-added tax and all goods for export are to be exempt from the application of VAT as well.
According to Mr. Carty, Cabinet was able to benefit from an extensive discussion of the plans for the introduction of the value-added tax (VAT) that is due to be introduced in November this year.
Financial Secretary, Mrs Janet Harris, and the VAT Officer, Mr. Edward Gift, led the discussions in the Cabinet.