Douglas knocks businesses that hike prices on VAT-exempted goods
BASSETERRE, St Kitts (CMC) — The St Kitts-Nevis Government has criticised business organisations that have increased the price of several items exempted from the Value Added Tax (VAT) and Customs duties.
“This is not nice. This is terrible and I am making this public appeal to our businessmen not to do this because the Government is going to police it and wherever it is found, we are going to do something about it,” said Prime Minister Dr Denzil Douglas.
A Government statement said that several people have complained that some businesses have increased the prices of numerous items contained in the ‘Family Shopping List of Goods’ announced by Prime Minister Douglas recently in an effort to reduce the cost of living.
“It is wrong. I want to again appeal to all with their good senses to use it on behalf of advancing the cause of our people, especially those who are having it difficult and those who are our pensioners,” Dr Douglas said.
Earlier this month, Douglas announced that the ‘Family Shopping List of Goods’ will now attract zero payment of import duty and the VAT upon import into the twin-island federation.
He said that the ‘Family Shopping List of Goods’ is divided into three parts, namey health and hygiene, balanced diet, and childcare and education.
“The health and hygiene items that will be zero VAT-rated include detergent, bleach, disinfectant, adult pampers, sanitary napkins, bathroom tissue, shampoo, mouthwash, body lotion, deodorant, toothpaste, soap, insecticides, rodenticides, and mosquito coils.
“Significantly, medicines in St Kitts and Nevis are to be zero-rated for VAT. In other words, no VAT should ever be charged on medicines. Yet persons have reported that some pharmacists and other retailers have been charging VAT on medicines.
“This should not be, and any person who is charged VAT on medicines should both strongly protest to the retailer involved, as well as lodge a complaint with the Ministry of Consumer Affairs,” said Prime Minister Douglas.
He said that the concessions are of direct benefit to everyone.
“Now that our economy has stabilised, the Government is very pleased to be in a position to provide them,” he added.
In 2010, St Kitts and Nevis implemented the VAT, with the Government stating then that the fiscal measure was essential to the stabilisation of the economy.


