Basseterre, St Kitts and Nevis: The Prime Minister of the Federation, Dr Terrance Drew, has recently announced that the government, under his leadership, will work to relieve the financial pressures on the importers and businesses so that economic activities through the businesses are encouraged.
The government has recently taken steps which will provide benefits to the general public who are dealing with financial pressures. As per the latest update by the government, it will extend the temporary tax reductions for businesses, extend the temporary reduction in the Excise Tax and reduce the average food freight charges at the 2019 price cap for importers.
PM Terrance Drew mentioned that these initiatives are a part of the ongoing economic recovery plan of the government of St Kitts and Nevis. It is anticipated that this initiative will benefit businesses, importers and households.
Prime Minister Drew was further quoted saying, “The objective is to help to sustain business operations within the Federation, boost employment opportunities, improve the livelihoods of our citizens and residents, and contribute to the overall economic recovery within our beloved Federation as we continue to work towards becoming a Sustainable Island State.”
The government has announced that following thorough consideration, the last date for the temporary tax cuts has been extended to the next six months, i.e. until December 31, 2023, from June 30, 2023. As per the latest updates, the temporary tax cuts of the Corporate Income Tax (CIT) will be 25 percent from 33 percent, and the Unincorporated Business Tax (UBT) will be 2 percent from 4 percent.
The government of St Kitts and Nevis had assured that these tax reductions were implemented during the difficult COVID-19 times when businesses were going through economic instability. It highlighted that these temporary tax cuts would also assist in economic growth, encouraging competitiveness and fostering cash flow.
Along with this, these implementations will also assist the food costs and will also preserve the job possibilities across the Federation.
As per the reports, the government of the Federation has also taken the decision to sustain the price cap for importers at the average food freight charges – in 2019. The charges include 20 feet of dry goods and 40 feet of cold storage items.
It is worth mentioning that the government of St Kitts and Nevis has been working hard to create an environment that will provide assistance to economic growth and a higher standard of living for its citizens and residents.