Basseterre, St. Kitts, December 16, 2024 (SKNIS): Prices in St. Kitts and Nevis are widely expected to fall in 2025, as the Government of St. Kitts and Nevis introduces a temporary reduction of the Value Added Tax (VAT).

A VAT Relief Holiday was announced by Prime Minister and Minister of Finance, the Honourable Dr. Terrance Drew, during his 2025 Budget Address delivered in the National Assembly on December 16, 2024. He noted that for the first six months of 2025, the VAT Rate, which is charged at 17 percent will be reduced to 13 percent.

“This VAT Relief Holiday will ensure more in your pocket, empowering families to better manage their expenses while maintaining their quality of life,” said Dr. Drew.

The temporary reduction in VAT, coupled with other measures such as the new Budget Boost Wallet initiative that will provide $250 per month for eligible individuals earning less than $5,000 per month for the first six months next year, and an increase in the minimum wage from $430 to $500 per week from July 01, 2025, is expected to enhance consumer earnings.

“To safeguard these savings, our recently passed Consumer Protection Act, and other relevant laws, will allow for strict monitoring of businesses to prevent price gouging or unfair practices,” the prime minister stated. “This Government remains purposeful and unyielding in our commitment to fairness, affordability, and protecting the interests of all citizens.”

Prime Minister Drew added that the strategic decision will help to further reduce the impact of inflation and assist households to adjust as multiple measures to stimulate the economy gain momentum.