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Prime Minister Harris, while appearing as the special guest on WINN FM’s (98.9) “Voices” programme, stated that food items up to the first 400 pounds will be free of duties and taxes, “so the parcels that persons may get from family and friends abroad with food stuff, there will be no duty and tax [on those].”
“Then for persons who are traveling, as opposed to gift packages coming in, you would be allowed a duty free allowance of EC$540 or US$200 off the CIF [cost, insurance and freight] value of those goods,” the Honourable Prime Minister added.
The duty free allowances announced by the Prime Minister complements the two discounted Value Added Tax (VAT) Rate Days planned for Friday, December 14 and Thursday, December 20, 2018.
On those designated days, all VAT registered businesses will charge VAT at the rate of 5 percent on the sale of goods only. All tangible items that are presently subject to 17 percent VAT will qualify for the discount VAT Rate. For vehicle purchases, VAT will be exempt on the first EC$50,000, with VAT at the standard 17 percent charged thereafter.
Non-tangible items, such as the supply of professional services, will continue to be subject to the 17 percent VAT rate. Services such as legal fees, restaurant supplies, rent, tickets for the game of chance (lottery/ raffles), top-ups and phone cards will not have VAT reduced rate.