The Government of St Kitts and Nevis is pursuing multiple efforts to relieve financial pressures on importers and businesses on encouraging economic activity throughout St Kitts and Nevis.
In reply to the persistent financial threats that businesses confront, the Government has made a decision to extend the temporary tax rate 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.
It is to be noted that, Prime Minister and Minister of Finance, Dr Terrance Drew stated that these steps are part of the Government’s ongoing economic recovery plan, which will greatly benefit importers, businesses and households.
He further stated that, “The target is to help to sustain business operations within the island, boosting employment opportunities, improving the livelihoods of our citizens and residents, and contributing to the overall economic recovery within Federation as we are continuing to work towards becoming a Sustainable Island State.”
Following the careful consideration, it was resolved that the temporary tax cuts of the Corporate Income Tax (CIT) from 33% to 25% and the Unincorporated Business Tax (UBT) from 4% to 2%, which were set to expire on June 30, 2023, will now be extended for an additional 6 months until December 31, 2023.
In addition to this, the Government of St Kitts and Nevis has extended the temporary reduction in the Excise Tax that is part of the price increase for unleaded gasoline until December 31, 2023. The Excise Tax was cut from $2.25 per gallon to $0.95 per gallon for a limited time.
The government has also agreed to sustain the price cap for importers at the 2019 average food freight charges, which include 20 feet (ft) and 40 feet (ft) dry goods and cold storage items containers and 20ft and 40ft containers.