IMF Says St Kitts's Fiscal Reform Program A Success
by Mike Godfrey, Lowtax.net, Washington
02 November, 2015
St Kitts and Nevis managed to meet its fiscal targets under an economic program backed by an International Monetary Fund (IMF) Stand-by Arrangement (SBA), the organization said.
The overall goal of the 2011-2014 program was to raise tax revenue, the IMF said. The final review of this program and the final disbursement has now been completed.
The IMF said many critical fiscal revenue reforms were introduced ahead of the launch of the program. The reforms included strengthening the auditing and monitoring of duty-free shops, introducing an environmental levy on new vehicles, and implementing a value-added tax (VAT).
Despite tax revenues from international trade falling slightly during the period, these fiscal reforms boosted revenue receipts significantly.
Non-tax revenue, especially from the Government's Citizenship by Investment (CBI) program, contributed significantly more revenue than anticipated, helping to offset the shortfall in revenue from taxes on income and trade.
The SBA for St Kitts and Nevis was approved on July 27, 2011, giving the country access to about USD84.5m. St Kitts and Nevis requested the three-year SBA to help it rein in public debt in the wake of the global financial crisis.
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