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Basseterre, St. Kitts, December 18, 2015 (SKNIS)—Thousands of shoppers are swarming businesses today December 18 as buyers and sellers meet to take advantage of the VAT reduced day.
President of the Chamber of Industry and Commerce (CIC), Damion Hobson, said from all accounts the country seems set to have a successful VAT Reduction Day as the day got off to an excellent start with people flocking to stores in long lines even before they were opened at 5:00 am.
According to the Chamber President, the VAT Reduction Day helps to stimulate the economy. He is of the view that it “reduces the drain on imports fueled by large overseas purchases in time for the busy Christmas/Carnival Season.”
The December 18th VAT Reduced Day is a part of the Government of National Unity’s agenda of re-calibration of the economy. Businesses are open past normal opening hours on this day.
VAT reduction day allows all VAT registered businesses to charge VAT at the rate of 5% on the sale of goods only. Some items are not eligible such as alcoholic beverages and cigarettes.
Persons buying vehicles get an exemption of VAT on the first $75, 000.00 and any cost in excess of the $75, 000 will attract the standard 17 % VAT.
The Team Unity Administration took the initiative to remove VAT from food, medicines and funeral expenses in April of 2015, a mere two months after taking office and fulfilling one of its major promises to the electorate.
CIC President Hobson said that the Chamber is pleased with the measure taken by the Government as it brings relief to people in the Federation.