By Spokesman Newsroom
BASSETERRE, St. Kitts (Thursday 16th April 2026)u2014u201cTo our businesses, we ask not for charity, but for fairness. When government reduces taxes, let those savings reach the people at the counter because when our people can breathe, our economy grows and that benefits everyone, including your business.u201d
So said Prime Minister and Minister of National Security and Finance Dr. Terrance Drew during an address to the nation on Tuesday 14th April 2026, as he announced a series of targeted economic relief measures aimed at easing financial pressure on citizens and stimulating economic activity.
Among the initiatives are a 50 percent reduction in the excise tax on gasoline, lowering it from EC $1.95 to EC $0.98 per gallon until July 31, 2026; a cut in the Customs Service Charge on gasoline from 6 percent to 3 percent; expanded tax exemptions on alternative energy equipment such as solar panels, making them free from VAT, Customs Service Charge and import duties until December 31, 2026; the removal of shipping surcharges from customs tax calculations on imports; and the continuation of Discounted VAT Rate Days throughout 2026 during the Easter, Back-to-School and Christmas periods.
Even as he outlined the measures, PM Drew underscored that the government expects the benefits to be felt directly by consumers.
u201cEffective April 20th, 2026, your government is implementing the following relief measures,u201d he stated, explaining that the reduction in the fuel excise tax alone represents $1.2 million in government support aimed at reducing the burden on motorists, households and the cost of transporting goods.
u201cThat is your government absorbing $1.2 million to ease the burden on motorists, households, and the cost of getting goods to the market,u201d he said.
As highlighted, the reduction in the Customs Service Charge on gasoline will also see the government absorbing an additional $600,000 in revenue, another move intended to reduce the cost of fuel for consumers.
u201cThat is your government absorbing $600,000 so that every fill-up leaves a little more in your pocket,u201d PM Drew added.
He also highlighted the governmentu2019s continued push toward renewable energy, announcing that the Alternative Energy Equipment Policy has been upgraded so that equipment such as solar photovoltaic panels will remain free of VAT, Customs Service Charge and import duty until the end of 2026.
u201cWe want to make it cheaper for you to power your own home,u201d he said.
Another measure will address the impact of additional charges imposed by shipping companies. According to the Prime Minister, surcharges from shippers will no longer be included in the customs calculation of taxes and duties on imported goods.
u201cWe will not allow hidden fees to become hidden taxes. That is your government absorbing those costs so you pay only what is fair, nothing more,u201d he stated.
As understood, to provide further direct relief to consumers, the government will also maintain Discounted VAT Rate Days throughout the year. The first will occur during the Easter period on Friday, April 17, 2026, followed by the Back-to-School shopping period on August 28 and 29, and two Christmas VAT discount days on December 11 and December 19, with vehicles included among eligible items.
u201cThese are genuine targeted interventions to put money back in your pocket, to keep your lights on, to keep your vehicle moving, and to help you breathe a little easier in a stormy world,u201d PM Drew said.
The Finance Minister acknowledged that while global economic conditions remain uncertain, the government will continue monitoring developments closely and taking action where necessary.
u201cYour government will continue to monitor, assess, and act carefully, responsibly, and always with your well-being at the center. That is our commitment,u201d he said.
PM Drew called for national unity and collective responsibility as the country navigates global economic challenges.
u201cLet us go forward together not as spectators but as participantsu2014not as complainers but as builders, not as people who wait for change, but as people who are the change.u201d