Nevis, West Indies. ?A Non-Tourist-Trap? Blog About Nevis.

Windfall For Labour Party Coffers

Basseterre, St. Kitts – Nevis
January 28, 2012 (SKNIS)

Prime Minister the Right Honourable Dr Denzil Douglas opened his first monthly press conference of 2012 on Wednesday January25, 2012 with expressions of high praise for the Value Added Tax initiative introduced in St. Kitts and Nevis in November 2010.

The Prime Minister said with pride that VAT had exceeded the government’s expectations in more than one way – the first being the number of businesses that registered for the programme in VAT’s first year – November 2010 to November 2011. According to the Prime Minister, also the Minister of Finance, the revenues collected from VAT in both islands have exceeded projected figures.

In Nevis, government projected VAT revenue of 24 million East Caribbean Currency Dollars for 2011, but the amount actually collected was EC$29 million, 5 million dollars more than was projected. In St. Kitts, the VAT amount projected to be collected for 2011 was EC$79 million, but the amount actually collected was EC$104 million, some 25 million dollars more than was projected.

In December of 2011, government declared a special VAT day in order to reduce the cost of Pre-Christmas spending for consumers. The level of response by consumers also far exceeded expectations.

“Some 12.8 million dollars in sales took place at 7% VAT that particular day, and the government returned to consumers through this reduced VAT, some 1.004 million dollars” said Prime Minister Douglas. “One million dollars was given back to consumers by the government on that particular day in December.”

As to the future of the VAT programme, the Finance minister said that the Government will continue to examine the logistics of the programme through consultations with traders and consumers. He underscored however, that the VAT revenue was critically important to “keep the engine and machinery of government turning over” and will be used to ensure the continuity of services provided by the government like paying teachers, keeping hospitals open, feeding children hot meals, providing school books and uniforms and paying student examination fees.

Businesses also came in for high praise from the Inland Revenue Department for their cooperation in the initiative.

“The Inland Revenue Department would like to thank businesses who, having registered and cooperated in the implementation process ensured that the appropriate taxes were collected and submitted in a timely manner in accordance with the VAT Act” said Acting Comptroller of Inland Revenue Department Mr. Edward Gift. “Though some businesses are still not in full compliance, the Inland Revenue Department is still willing to assist in bringing them to a state of full compliance with the VAT Act.”

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VAT Taxes Help Labour Government

Basseterre, St. Kitts – Nevis
January 26, 2012 (CUOPM)

The number of registrants under the Value Added Tax (VAT) Programme is just over 700 with 525 in St. Kitts and 182 in Nevis.

Speaking at his monthly press conference on Wednesday, St. Kitts and Nevis’ Prime Minister Hon. Dr. Denzil L. Douglas disclosed that in December when the Government declared a special VAT Day in order to reduce the cost of pre-Christmas spending for consumers, VAT, which was reduced  from 17% to 7%, amounted to EC$12.8 million in sales.

“The Government returned to consumers, through this reduced VAT, some $1,004,151.00,” said Prime Minister Douglas, who is also Minister of Finance.

113 businesses – 87 in St. Kitts and 26 in Nevis registered to participate in the reduced VAT Day.

VAT filings have been quite strong with a rate of 95 percent in November 2011 compared to 99 percent in November 2010.

Prime Minister Douglas told reporters and the Nation that actual VAT revenues since the fiscal measure was introduced in November 2011 have also exceeded projected VAT revenues.

“In Nevis, for example, we had projected some EC$24 million in VAT revenues for 2011.  The amount actually collected, however, was EC$29 million. EC$5 million more than projected. Similarly, in St. Kitts, we had projected EC$79 million in VAT revenues for 2011. The amount actually collected, however, was EC$104 million. EC$25 million more than projected,” said Prime Minister Douglas, who is also the Minister of Finance.

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CTO Chairman – Richard Skerritt
Photo By Erasmus Williams

Basseterre, St. Kitts – Nevis
December 04, 2011 (CUOPM)

Chairman of the Caribbean Tourism Organisation (CTO), Sen. the Hon, Richard Skerritt has warned the region not to allow local political partisan interests to undermine the Caribbean’s main income earner.

Sen. Skerritt, who is also Minister of Tourism and International Transport in St. Kitts and Nevis, said given the challenges of the current world economy, there is an urgent need for all sectors in each island to work closer together.

Speaking at a tourism seminar in Grenada, he said local politicians must put aside their own partisan interests to ensure that the region’s tourism sector survives these times.

“Our tourism must be protected from the partisan tribalism that often divides us in these islands. We don’t have to like each other to work together in the national interest,” Skerritt explained.

“We just need to like what we do and love our country. We don’t have to agree on everything in order to improve our product standards and island experience for our visitors.”

The St. Kitts and Nevis Tourism Minister said the common national interest of preserving the crucial tourism sector must trump all other considerations.

Skerritt said an eminent danger to regional tourism is what he called local “political stupidity.”

“We don’t have to vote for the same party in order to recognise the value of tourism expenditure in our economy,” he said.

“We must therefore not allow the vital needs of tourism to be compromised by shortsighted political stupidity. Political stupidity is prevalent across our region.”

The CTO Chairman also warned about the eagerness to cut back spending on market competitiveness because of the crisis.

He said what the industry needs now in a time of crisis are wise investments.

“And while we have to be prudent in our own expenditure we must not allow overly obsessed cost cutters in our businesses and government to ignore the need for people development or in market competitiveness,” said the tourism minister.

“We should have passed the stage of debating this but across the region you will be surprised how many people do not understand this. You will be surprised at how many leaders in our industry, government and private sector do not understand that tourism wealth actually alleviates poverty,” said Skerritt in the CMC report by Rawle Titus in Grenada.

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