Concerns Arise Over Price Adjustments Amid VAT Relief Holiday in St. Kitts & Nevis

Basseterre, St. Kitts – February 7, 2025 – The six-month Value Added Tax (VAT) Relief Holiday, implemented on January 1, 2025, was expected to ease financial burdens on consumers in St. Kitts and Nevis by lowering prices on goods and services. However, a preliminary market assessment conducted by the Department of Consumer Affairs has revealed mixed results, with some businesses failing to reflect the expected reductions.
A recent survey of four major retail outlets found that while some prices have indeed decreased, there are cases where businesses have either maintained their original prices or adjusted receipts in a way that could mislead consumers.
“In some cases, businesses have maintained the same total price but a lower VAT rate is on the receipt, which is deceptive and unfair to consumers,” said Tricia Delaney, Communications Officer at the Department of Consumer Affairs. She voiced her concerns on the February 5, 2025, edition of InFocus, urging businesses to adhere to the VAT reduction policies transparently.

Consumers are being encouraged to take an active role in ensuring they benefit from the VAT relief. Mrs. Delaney advised that customers should compare receipts from previous purchases and, if discrepancies are found, first raise the issue directly with store officials in a respectful manner. If the matter is not resolved, consumers should then escalate their complaints to the Department of Consumer Affairs.
“What we find is that people don’t report cases. We will go online (social media) and see people discussing these issues, but no one actually calls or visits our office to report them,” Mrs. Delaney noted. “If you suspect something is wrong when conducting business—if you feel you are being overcharged or if you think the VAT rate is incorrect—we ask that you contact us.”
Consumers can report concerns to the Department of Consumer Affairs by visiting their office at Bladen’s Commercial Development, calling 467-3350, or sending a direct message via social media.
Officials have confirmed that reported cases will be thoroughly investigated, and any violations discovered will be referred to the Cabinet for further action. The government remains committed to ensuring that the VAT Relief Holiday provides the intended economic benefit to all citizens and residents of St. Kitts and Nevis.
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