Basseterre, St. Kitts, December 16, 2016 (SKNIS)—Thousands of shoppers are swarming businesses today December 16 as buyers and sellers meet to take advantage of the Discounted VAT-Rate Day.
The December 16th VAT Reduced Day is part of the Government of National Unity’s agenda of re-calibration of the economy. Businesses are open past normal opening hours on this day.
VAT reduction day allows all VAT registered businesses to charge VAT at the rate of 5% on the sale of goods only. Some items are not eligible such as alcoholic beverages and cigarettes.
This year, persons buying vehicles get an exemption of VAT on the first $50, 000.00 and any cost in excess of the $50, 000 will attract the standard 17 % VAT.
The Team Unity Administration took the initiative to remove VAT from food, medicines and funeral expenses in April of 2015, a mere two months after taking office and fulfilling one of its major promises to the electorate.
It was reported by Prime Minister and Minister of Finance, Dr. the Honourable Timothy Harris, that last year’s Discounted VAT-Rate Day, which was on December 18, recorded the greatest sales on record in the history of the Discounted VAT-Rate Day in St. Kitts and Nevis since its introduction in 2011.
Last year, businesses on Nevis that registered for the Discounted VAT-Rate Day accumulated 11 million dollars while businesses in St. Kitts amassed 30 million dollars.
This year, 60 businesses in St. Kitts and 26 in Nevis registered to participate in the Discount VAT-Rate Day.