Under Prime Minister Dr Terrance Drew, the government of St Kitts and Nevis has been trying to extend support to the country’s businesses. They are taking steps to ensure that the businesses and importers do not face any financial pressure. They want to ascertain that businesses can assist in the country’s economic recovery. The businesses in the federation continue to face several financial challenges in their operations.
The government has decided to extend the temporary tax rate reductions to support businesses. They extended the temporary reductions in the excise tax rates and reduced the average food freight charges at the 2019 price cap for importers.
The Prime Minister of St Kitts and Nevis, Dr Terrance Drew, revealed that the initiative is a part of the government’s plan for the economic recovery of the nation. He claimed that the plan would favour the country’s people, businesses, importers and households.
The Prime Minister indulged in carefully considering the facts and asserted that they are introducing temporary tax cuts of the Corporate Income Tax (CIT) from 33% to 25% and the Unincorporated Business Tax (UBT) from 4% to 2%. Originally, these tax cuts were scheduled to expire on June 30.
However, in line with the government’s mandate to support businesses, the tax concessions will extend for six months. The concessions would assist businesses in recovering from financial insecurity during the covid 19 pandemic. The prime minister revealed that the reductions were initially temporary.
It will help the government to encourage economic growth, competitiveness, reduce food costs, encourage cash flow, and preserve job possibilities. The Terrance Drew-led administration has also taken the initiative to extend the temporary reduction in the Excise Tax. This is part of the price increase for unleaded gasoline, and the government has extended this until December 31, 2023.
The prime minister of St Kitts and Nevis Dr Terrance Drew is also the Minister of finance. Accordingly, he asserted that his government is constantly working to create an environment that supports economic growth. He wants to provide a higher standard of living for the people of the country.