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In his First State of the NATION Address Prime Minister of St.Kitts-Nevis the Hon Dr. Timothy HARRIS has announced the introduction of a much welcomed policy that will bring relief to the citizens of the twin island federation.

Prime Minister Harris announced that on April 7^th 2015 VAT will be removed from ALL FOOD, Medicine, Funerals.

” Effective April 07, 2015, VAT on all food in St. Kitts and Nevis will end. Team Unity promised a better way, we promised prosperity for all and this initiative represents a fresh start on that new journey. We will deliver on our commitment to relieve our people of the burden of Value Added Tax (VAT) on essential items like medicines, educational supplies, and funeral expenses,” Prime Minister Harris Stated.

The New Policy was one of the many policy initiatives promised by the Team UNITY Alliance in the lead up to the recently held General Elections. The VAT Tax has been seen by the vast majority of citizens on the islands as the single biggest hindrance to the economic development of citizens and the country.

The Total Removal of VAT from all essential items will bring much needed relief to citizens and will provide the most significant economic stimulus the country has scene since the removal of Personal Income Tax in the 1980’s by the then Dr. now Rt. Hon Sir Kennedy A Simmonds led administration. The removal of the Income Tax then resulted in unprecedented growth and development in the country during the 80’s and 90;s. The removal of VAT on essential items on April 7^th will have a similar effect according to many local economists.

VAT was introduced in 2010 at 17% which was and remains today the 2^nd Highest VAT Tax in the region and the highest introductory rate ever in Caricom.