Blogs

VAT set to replace 12 other taxes in St Kitts and Nevis

Posted by CaribShout on April 22, 2010 at 8:18pm

BASSETERRE, St Kitts and Nevis, April 21, 2010 – The federal government of St Kitts and Nevis is still on track to implement a value added tax (VAT) system by November this year, according to the post-cabinet briefing issued by the state to regional media this morning. During the April 20 cabinet session, ministers of the twin-island state heard from officials in the Ministry of Finance that the new VAT system would replace the following duties and taxes: 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 (on international direct dialed calls) and Parcel Tax. During the cabinet discussion led by the Financial Secretary, Janet Harris, and the VAT Officer, Edward Gift, it was also revealed that a number of basic goods will be zero-rated in order to make them more affordable for consumers and the goods being considered for exemption of VAT were milk, infant formula, diapers, rice, sugar, and certain medicines for chronic diseases such as hypertension, diabetes, and cardiovascular disease, among other basic and important supplies. Additionally stated the ministry officials, a number of transactions, such as the sale of real property attributable to a dwelling subject to stamp duty, may be exempt from VAT; while all goods for export are to be exempt from the application of VAT as well. Harris said that the Ministry of Finance was prepared to engage the general public on the new VAT regime through holding formal public discussions about the associated policy issues, and the significant advantages of the VAT; while addressing the technical matters surrounding the implementation of VAT, taking into account the various interest groups in the country. She said her ministry would work with other ministries and other stakeholders to craft the relevant programmes of public education. Prime Minister and Minister of Finance Dr Denzil Douglas noted that the implementation of the VAT was in harmony with the eight-point stabilization and growth programme for the Eastern Caribbean States agreed to in September of last year. This programme, he reminded, is geared towards setting St. Kitts and Nevis on a stronger path for growth, development and economic stability. Adding that so many other countries have already implemented the VAT, Dr Douglas concluded that St. Kitts and Nevis must not be left out from the important tax reforms that are occurring in the region, and insisted that meeting implementation timelines as outlined was critical if the territory was to derive the anticipated benefits from these reforms.
Views: 38
Tags: 12, kitts, nevis, st, vat, and, caribbean, economy, in, other

Community

Culture

Entertainment

Food

Health