In 2024, the Prime Minister, the Hon. Dr. Terrance Drew announced that for the first six months of 2025, tax payers will have vat relief by reducing the 17% amount of value added tax to 13%. It forms part of the Budget Boost Wallet (BBW) initiative. This went into effect on January 1st 2025.
Furthermore, in late January, the Inland Revenue Department of St. Kitts and Nevis released a notice that vat-registered taxpayers have until Monday, February 17th, 2025 to update shelf prices.
The VON Newsline contacted a department representative in St. Kitts for further clarity. Senior Tax Inspector, Tonya Lawrence who shared, “Businesses are still required to charge the rate of 13% for the period stipulated by the Prime Minister.”
Lawrence continued to state that, “Due to the fact that the VAT Act states that the prices on the shelves should be VAT inclusive, the Government/Department understands that taxpayers would need the time to change their pricing on their shelves, hence the deadline.”
Consumers are encouraged to report any suspicious activity of vat-registered businesses that are not in compliance. Persons can reach the Consumer Affairs Department at 467-1550 in St. Kitts or 469-5521 on Nevis.
