St Kitts To Offer Just One VAT-Free Day This Year
by Mike Godfrey, Lowtax.net, Washington
29 October, 2015
The Government of St Kitts and Nevis has said it will limit its traditional value-added tax holiday for islanders during the christmas period to a single day this year, as opposed to two last year.
The Prime Minister, Timothy Harris, said the decision has been taken "in the context of renewed fiscal discipline" and could be justified because "for the year so far, the Government has delivered to the private sector tax concessions [of] over XCD100m (USD37m)."
Harris also said that the Government has been advised to cut back on the number of concessions that it gives to the private sector. "We therefore have to be careful because this has been a source of engagement with the International Monetary Fund (IMF). The IMF has said repeatedly – and the Central Bank – that we have to look at our concessions system and whether or not they have become anachronistic in a new age, where there should be a levelling of the playing field. We therefore have to be careful that we do not create too many inequities in moving forward," he said.
St Kitts and Nevis provided tax relief in April 2015 by removing VAT on food, medicine, and funeral expenses.
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