St Kitts and Nevis: PM announces December concessions on food packages

Last updated: October 26, 2017 at 10:25 am

People sending packages of food items to St Kitts and Nevis this December will pay no duty on the first 181kg (400lbs).

The weight works out as roughly four full barrels, according to Prime Minister Timothy Harris, who made the announcement during a press conference this evening (25 October).

The tax breaks will run from 1 December until 31 December.

According to government sources, the move will be "undoubtedly be welcomed" at a time when many people overseas send food packages back to St Kitts and Nevis.

The opposition is yet to respond to the new measures.

It was also announced that “non-commercial travellers will receive a duty-free allowance” of EC$540 (US$200) off the cost, insurance and freight (CIF) value of goods.

Catalyst for the economy?

Another boost for spenders comes on 15 December, which has been chosen as Reduced VAT Rate Day.

The prime minister suggested those in the market for a new car should look to buy on that day.

“I should note that, as part of concessions given for that day, vehicles purchased up to the value of EC $50,000 will be exempted from the payment of VAT,” said the minister of finance.  

The 17% tax will still apply for purchases above $50,000.

The moves are part of the government's attempts to stimulate the economy.

The financial outlook of the federation has come under scrutiny in recent weeks.

The opposition has picked up on the country's drop on the  World Bank’s 2017 Ease of Doing Business, where it is now ranked at 134 out of 190 nations.

St Kitts-Nevis Labour Party leader Denzil Douglas said that the report notes a number of factoes that have made it more difficult for individuals to start businesses this year, according to SKNNews.