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VAT BACK TO 17% & $250 SUPPORT GONE!
— Days After Vybz Kartel’s $4M Music Fest Payday!

BASSETERRE, ST. KITTS — July 1, 2025
In a stunning blow to struggling citizens, the St. Kitts and Nevis government has reinstated the full 17% VAT and ended the $250 monthly low-income support, leaving many reeling just days after the controversial $4 million performance by Jamaican dancehall star Vybz Kartel at the St. Kitts Music Festival.

According to a notice issued by the Inland Revenue Department (IRD) under the Ministry of Finance—led by Prime Minister Dr. Terrance Drew—the reduced 13% VAT rate officially expired on June 30 and the full 17% rate takes effect as of today, July 1.
The IRD wrote:

“Dear Valued Taxpayers,
This is a friendly reminder that the reduced VAT rate of 13%—in effect since January 2025—will conclude on June 30, 2025.
As of July 1, 2025, the standard VAT rate of 17% will be reinstated…”

But there’s nothing “friendly” about the timing, according to frustrated residents.

Also ending on June 30 was the government’s much-touted $250 per month Low-Income Support Benefit, which had been providing a lifeline for the federation’s most vulnerable. Critics are now blasting the administration for tightening the economic screws on locals while allegedly handing millions to foreign entertainers.

The decision comes mere days after Kartel’s virtual appearance electrified the Music Festival stage, a performance that is still clouded in controversy over its reported $4 million price tag. It remains unclear whether that fee was subjected to the 13% VAT or will now attract the reinstated 17%.

“So Kartel got a $4M check and we get higher VAT and no support?” one angry market vendor told SKN Times. “This government has no shame!”

The St. Kitts Music Festival brought hundreds of visitors to the island last weekend, many of whom have already departed, leaving behind a populace bracing for deeper financial strain.

Social media is ablaze, with users questioning the government’s priorities:

“How does one justify removing income support and reinstating higher taxes while funding million-dollar performances?” asked one post. “St. Kitts is starting to feel like a stage show while the people starve backstage.”

As of today, taxpayers, business owners, and consumers must all adjust to higher prices on goods and services, while the silence from the Prime Minister’s Office on the Kartel controversy grows louder.

One thing is clear: while Kartel allegedly smiles his way to the bank, the average citizen is being taxed to the bone.