BusinessNewsRegional

VAT Continues to Perform Well for Nevis In 2019, Finance Minister Brantley Says

by: - December 13, 2019
37 Views   no discussions

Hon. Mark Brantley, Premier of Nevis and Minister of Finance in the Nevis Island Administration

NIA CHARLESTOWN NEVIS (December 12, 2019) — The Value Added Tax (VAT) continues to be the single biggest revenue generator for the Nevis Island Administration. However, it continues to streamline its VAT Exemption policy.

Hon. Mark Brantley, Premier of Nevis and Minister of Finance, made that disclosure when he presented the 2020 Budget Address with the theme “Building Resilience, Improving Infrastructure for Long-Term Development, a Harmonized approach to Economic Growth” at a sitting of the Nevis Island Assembly Chambers on December 03, 2019.

“In light of this, we continue to streamline our VAT exemption policy and to grant exemptions from VAT only in respect of those matters as prescribed in the legislation. This tax, which is a broad-based tax, touches every sector of the economy, be it sale of goods or services, and it is therefore a good indicator of the state of our economic performance year after year…

“The total VAT generated for the period January to October 2019 therefore amounted to $28.1 million. Based on this trend, it is clear that the VAT expected to be collected for fiscal year 2019 will be on par with that collected during the previous fiscal year,” he said.

The finance minister explained that for the period January to October 2019, the administration collected through the Inland Revenue Department $14.6 million from VAT on goods and services.  It represented a 3.9 percent decrease when compared to the similar period in 2018 when a total of $15.2 million was collected.

He stated that the decrease in VAT collections was due largely to the four-month closure of the Four Seasons Resort and the effects on the economy.

The collection of VAT through the Customs Department for a similar period in 2019 was $13.5 million. It represented a 4.7 percent increase when compared to the similar period in 2018 when $12.9 million was collected.

Mr. Brantley attributed the increase to an uptake in construction and related services which he believes augurs well for VAT collected for January to October 2019.

“This was due in part to the uptake in construction and its related services resulting from the major capital investment in the renovation of the Four Seasons property.

“The total VAT generated for the period January to October 2019 therefore amounted to $28.1 million. Based on this trend, it is clear that the VAT expected to be collected for fiscal year 2019 will be on par with that collected during the previous fiscal year,” he said.