BASSETERRE, St. Kitts — Citizens and residents received more good news on Tuesday evening when Prime Minister Dr. the Honourable Timothy Harris announced that his Team Unity Cabinet has consented to extend the Discounted VAT Rate Period to two days on December 18 and 19.
“The Government, based on representation and consultation with the Chamber, decided on Monday that we would extend VAT Day, which was originally carded for Friday, December 18 to another day Saturday, December 19,” said the Prime Minister. “We hope that the additional day will help to further stimulate economic activity, assist small businesses with improved sales and help spread economic activity over those two days.”
Prime Minister Harris noted that the primary reason behind the Cabinet’s decision to add a second VAT Day is to minimize overcrowding on any particular day.
“We hope by extending the VAT Day offerings to Saturday we can have less congestion on Friday and Saturday,” said Dr. Harris, “and behaviours more conducive to the COVID-19 environment. We expect businesses…to observe COVID-19 protocols regarding physical distancing, and wearing masks.”
On the Discounted VAT Rate Days, all tangible items currently subject to 17 percent VAT qualify for the discount on “VAT Day.” Eligible items must also be available for sale and immediate issuance or delivery to the customer on Discounted VAT Rate Day. Orders for items that are not in stock do not qualify. For vehicle purchases, VAT is exempt on the first $50,000 with VAT at the standard 17 percent charged thereafter.
Additionally, throughout the entire month of December (1 to 31) people will benefit from approved duty concessions on food, gift packages, and passenger allowances.
Gift packages of foodstuff up to 400 pounds in weight will be allowed free of duty and taxes. Travelers and non-commercial importers will receive a duty-free allowance of EC$540 or US$200 off the Cost, Insurance and Freight value of goods.
Prime Minister Dr. the Honourable Timothy Harris announces December 18 and 19 will be Discounted VAT Rate Days.