St Kitts and Nevis cuts fuel tax and import duties to ease cost of living

St. Kitts and Nevis: Prime Minister and Minister of Finance, Dr. Terrance Drew announced four new relief measures on Tuesday morning, April 14, 2026 during a national address. These measures are aimed at lowering the cost of basic goods and making living more affordable for the people of St. Kitts and Nevis.

The four initiatives will take effect as of Monday, April 20, 2026. “These are genuine, targeted interventions to put money back in your pocket, to keep your lights on, to keep your vehicle moving and to help you breathe a little easier in a stormy world,” said PM Drew.

The first measure is the drop in excise tax on gasoline by 50%, from EC$1.95 of EC$0.98 per gallon. This will be in effect till July 31, 2026. The government will cover around EC $1.2 million, which will reduce fuel costs for both drivers and consumers.

The second measure is the reduction of custom duty charge on gas. It will reduce from 6% to 3% and will stay in effect until July 31, 2026. The government will cover around EC$600K, which will make gas more affordable at the pump. “Every fill-up leaves a little more in your pocket,” said PM Drew.

Another large step has been taken in the energy sector. They have upgraded their alternative energy equipment policy. This upgrade removes VAT, custom service charge, and import duty from equipment like solar panels until December 31, 2026. The government will absorb EC$405,000.

The last measure implemented will exclude extra shipping charges imposed by shippers in customs calculations of taxes and duties on imports. The government aims to avoid no hidden taxes on hidden fees to provide a more transparent purchasing process for the consumers.

He also announced that discounted VAT rate days will continue to provide consumers relief throughout the year.

• Discounted VAT rate day for Easter will be on Friday, April 17

• Discounted VAT rate day for back-to-school period will be Friday, August 28, and Saturday, August 29

• Discounted VAT rate day for Christmas season (including vehicles) will be Friday, December 11, and Saturday, December 19

Prime Minister Terrance Drew said that these measures are for the betterment of the citizens of the Federation. The government is providing over EC $2 million in support of the people. “Your Government chose relief over revenue – because when our people can breathe, our economy grows,” he stated.

The Prime Minister of St. Kitts and Nevis said that these are part of the Sustainable Island State Agenda (SISA) and the SEED (Sustainability, Education, Empowerment, and Development) strategy. These measures are expected to reduce their dependence on the Citizenship by Investment programme and at the same time develop a more diverse economy.

PM Drew shared a Facebook post stating, “To our businesses: we ask not for charity but for fairness. When the Government reduces taxes, let those savings reach the people at the counter. Because when our people can breathe, our economy grows and that benefits everyone."