The Value Added Tax (VAT) continues to be the single biggest revenue generator for the Nevis Island Administration according to Hon. Mark Brantley, Premier of Nevis and Minister of Finance, who made that disclosure when he presented his 2020 Budget Address at a sitting of the Nevis Island Assembly Chambers Dec. 3.
“In light of this, we continue to streamline our VAT exemption policy and to grant exemptions from VAT only in respect of those matters as prescribed in the legislation. This tax, which is a broad-based tax, touches every sector of the economy, be it sale of goods or services, and it is therefore a good indicator of the state of our economic performance year after year,” he said.“The total VAT generated for the period Jan. to Oct. 2019 therefore amounted to $28.1 million. Based on this trend, it is clear that the VAT expected to be collected for fiscal year 2019 will be on par with that collected during the previous fiscal year.”
The finance minister said the administration collected through the Inland Revenue Department $14.6 million from VAT on goods and services for the Jan.-Oct. 2019 period. That represented a 3.9 percent decrease when compared to the similar period in 2018, due largely to the four-month closure of the Four Seasons Resort and the effects on the economy, according to the finance minister.
The collection of VAT through the Customs Department for a similar period in 2019 was $13.5 million, representing a 4.7 percent increase when compared to the similar period in 2018.
“This was due in part to the uptake in construction and its related services resulting from the major capital investment in the renovation of the Four Seasons property,” he said. “The total VAT generated for the period January to October 2019 therefore amounted to $28.1 million. Based on this trend, it is clear that the VAT expected to be collected for fiscal year 2019 will be on par with that collected during the previous fiscal year.”