St Kitts And Nevis Details Fiscal Plan

by Amanda Banks, Tax-News.com, London

18 June 2010

The Prime Minister of Saint Kitts and Nevis, Denzil Douglas has outlined several measures to begin tackling the Federation's deficit, which is among the highest in the world in terms of Gross Domestic Product (GDP).

Detailing the tax plan's measures, Douglas said firstly that the government would streamline tax exemptions, removing unnecessary ones, to save XCD15.2m per annum.

The government intends to close loopholes in the Duty Free Shopping System, which is expected to raise an additional XCD7.2m annually in revenue. “The Draft Duty Free Stores Bill is being reviewed by the Ministry of Finance. The Ministry expects to have the Act passed by July 2010. The intention is to ensure that the system continues to achieve the intended objectives and to make improvements where necessary,” Douglas announced.

Further, Douglas announced the government would be revising the structure of the Social Services Levy to generate XCD8m. “The intention is to make the Levy more progressive so that those who earn more pay more. We will also ensure that there is appropriate coverage of all income categories,” he said.

An increase in the license fees for casinos and implementation of race track fees is also planned, worth XCD500,000 annually. The government is also to tackle non-compliance in this area, Douglas said.

An additional measure, already enacted as part of the 2010 Budget, an environmental levy on vehicles, will bring in a final XCD500,000 for government coffers, he concluded.

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