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Basseterre, St. Kitts – February 6, 2025 – A major contrast in economic policies is emerging in St. Kitts and Nevis as citizens reflect on the bold VAT removal under Dr. Timothy Harris’ leadership compared to the limited VAT discount under Prime Minister Dr. Terrance Drew.

In 2015, shortly after taking office, then-Prime Minister Dr. Hon. Timothy Harris and the Team Unity government fulfilled a key campaign promise by completely removing VAT from food, medicine, and funeral expenses. This decision, implemented on April 15, 2015, delivered unprecedented economic relief to the people of St. Kitts and Nevis, particularly benefiting low-income families and the most vulnerable.

In contrast, Prime Minister Dr. Terrance Drew recently announced a temporary 4% VAT discount on vatable items for six months. While this measure has been framed as a form of economic relief, many argue that it pales in comparison to the total VAT removal implemented by Dr. Harris and Team Unity. The impact of a mere 4% reduction is minimal, benefiting mainly the wealthy, while the poor and vulnerable see little to no real financial relief.

Economic Impact: VAT Removal vs. VAT Discount

The complete VAT removal on essential goods under Dr. Harris’ leadership translated into real savings for every household, ensuring that families had greater purchasing power. By contrast, the 4% VAT discount does little to ease the burden of rising living costs, leaving many struggling to make ends meet.

Dr. Harris and Team Unity recognized the urgent need for substantial economic relief, while the current administration’s VAT discount fails to provide meaningful assistance to those who need it most. With inflation and financial strain already affecting citizens, a temporary 4% discount is viewed as an inadequate and short-lived solution.

Calls for Meaningful Economic Policies

As the people of St. Kitts and Nevis compare both approaches, there is growing disappointment over the lack of bold, long-term economic measures under the current administration. Many are calling for policies that truly alleviate financial burdens, similar to the comprehensive VAT removal under Dr. Harris and Team Unity.

With the cost of living on the rise, the question remains: Why settle for a 4% discount when full VAT removal on essential goods was once achieved? The people of St. Kitts and Nevis are demanding real economic solutions, not short-term, symbolic measures.