Tax Hikes Avoided In St Kitts And Nevis Budget

by Amanda Banks, Tax-News.com, London

24 February 2005

Despite fears that the government’s debts would lead to an increase in taxation, Prime Minster and Minister of Finance Dr Denzil Douglas pledged to leave taxes on hold when he delivered the St Kitts and Nevis government budget for 2005 on Tuesday.

Although Dr Douglas had previously conceded that the national debt is in need of reduction, he revealed in his speech that that the Inland Revenue Department had seen a steady increase in revenue collections, which has precluded the need for either increases in current taxes, or the re-introduction of personal income tax.

Furthermore, the Prime Minster announced that an “aggressive approach” will be taken by the government in the privatisation of state assets, in an attempt to generate additional non-tax revenue.

However, some minor changes to various levies and duties were announced by Douglas. These included: the transfer of the stamp duty burden to the seller from the buyer in land purchase transactions; the elimination of the entertainment tax on performances in which the artists are all nationals of the Federation; and the removal of the environmental levy on motor vehicles which are less than two years old.

In addition, Douglas announced an increase in the customs service charge for individuals and entities benefiting from import duty and consumption tax exemption.

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