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Basseterre, St. Kitts, November 20, 2016 (SKNIS): With zero VAT already on food, medicines and funeral expenses since 2015, consumers are further encouraged on VAT REDUCED DAY on December 16 to take advantage of 5 percent VAT on appliances and merchandise, and zero VAT on vehicles under the price of EC$50,000. Vehicles over EC$50,000 will be charged the full VAT amount of 17 percent.

Prime Minister and Minister of Finance, Dr. the Honourable Timothy Harris, announced on November 19 in a national address that Cabinet in its deliberation determined that an extra month’s salary is to be paid to all civil servants, auxiliary workers, and pensioners on the government’s payroll.

According to Dr. Harris “this represents a thirteen month salary or an 8.3% bonus to government employees and pensioners,” while highlighting that “this payout will benefit not only federal employees and pensioners but also those on the payroll of the Nevis Island Administration (NIA).”

Prime Minister Harris also announced that “gift packages of food stuff will be allowed free of duties and taxes for the first 400 lbs. starting from the 9th and going to 31st December, 2016 and that travelers will receive a duty free allowance of EC$540 (US $200) off the CIF value, which will also run from 9th to 31st December, 2016.”

Additionally, the government has approved an extension of duty-free concessions, which are applicable every five years, to Stand Alone Restaurant Operators. These concessions apply to the purchases of food and wine, restaurant equipment, cutlery and glassware.

The prime minister noted “that the normal VAT at 17% and Customs Service Charge at 6% are payable on the importation of equipment, cutlery, crockery and glassware and that interested restaurant operators are asked to contact SKIPA on the 3rd Floor of the Cable Building on Cayon Street, Basseterre.”

The payment of monthly salaries and pensions will be made on Wednesday 14th December, 2016, instead of the originally scheduled date of Friday 16th December, 2016, to facilitate consumers.


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