Nevis, West Indies. ?A Non-Tourist-Trap? Blog About Nevis.

Basseterre, St. Kitts – Nevis
People’s Action Movement
August 15, 2010

Former Barbados Prime Minister Owen Arthur, on a brief visit to St. Kitts and Nevis as a consultant on matters pertaining to the UNDP’s Millennium Development Goals, was very positive in his assessment of the St. Kitts-Nevis Governments decision to implement a value-added-tax (VAT), during an August 7th interview with Press Secretary Erasmus Williams.

Barbados established a VAT back in 1997, during Arthur’s tenure as prime minister.  The rate was set at 15% for most products and services, and 7.5% for hotel accommodations.  Exempt, or ‘zero-rated’ items, include exports and prescription drugs, among others.  The VAT replaced 11 domestic levies, including the Consumption Tax, Stamp Duty, Surcharge, Excise Tax, and an Environmental Levy.  Since introducing VAT the people of Barbados have showed their appreciation by voting him out of office.  Mainly as a result of the failure of VAT to generate the kind of revenue that results in a much lowered National Debt.  Instead the Barbados debt to gdp ratio increased from 75 percent at the time Owen introduced VAT in 1997 to 111 percent in 2006  according to the Barbados Central Bank .  The record 111% debt to gdp ratio was recorded long before the current global downturn.

The introduction of VAT also brought year after year of massive deficits. The first year of the VAT brought a deficit of $128 million.  By the time Arthur was voted out of office in 2008 the deficit had grew to a whopping $307 million.

A closer look at the VAT in Barbados will show differences to the proposed VAT introduction in St. Kitts – Nevis.

The VAT rate in Barbados is 15% as compared to the proposed 17% here in St. Kitts-Nevis.  There is a concessionary rate of 7.5% on holiday or vacation accommodation  and some goods carry a rate of 0% or zero-rated .

In 2006 the Barbados government rejected the recommendation by the IMF to increase the VAT rate to 17.5%.  According to then Prime Minister Owen Arthur the increase would cause undue hardship for Barbadians.  It would be interesting to know what his feelings are on the proposed 17% VAT that is to be implemented come November 1st. 17.5% , according to Arthur , would cause undue hardships on Barbadians so Press Secretary Williams should have inquired of the esteemed former leader if the 17% VAT in St. Kitts – Nevis will cause similar hardships

“I wonder if former Prime Minister Arthur advised the Denzil Douglas government that a 17% VAT rate will cause undue burden on citizens of St. Kitts – Nevis as he told the IMF back in 2006,” said People’s Action Movement MP Hon. Shawn K. Richards

“A recommended 17.5% VAT was rejected by Owen Arthur in 2006 citing the undue hardships it would cause on Barbadian citizens.  However that was never mentioned or highlighted in his interview.  It should have also been highlighted that the hotel and accommodation concessionary tax in Barbados is 7.5% compared to 10% here in S t.Kitts – Nevis,” Richards continued.

Barbados first began discussion on the possible implementation of a VAT tax in 1978 almost 20 years before it’s implementation.  The St. Kitts – Nevis government made the announcement of a November 1st VAT implementation date in March of this year.

Related posts:

1. New Nevis Property Tax To Affect Villa Rentals
2. Premier Parry to Attend Caricom Meeting
3. St. Kitts – Nevis’ Public Debt On The Decline
4. St. Kitts – Nevis To Issue Updated Drivers License
5. Dual Nationality Issue Resurfaces Again

The Court Yard At St. Kitts’ Marriott Resort
Photo By Erasmus Williams

Basseterre, St. Kitts – Nevis
April 27, 2010 (CUOPM)

The Seventh Meeting of Senior Officials of the Legal Affairs Committee (SOLAC) began meeting here Monday in preparation for the 14th Ordinary Meeting of the Legal Affairs Committee (LAC).

During the April 26th and 27th meeting, SOLAC officials are discussing several issues including a Redraft of the CARICOM Arrest Warrant Treaty; a Redraft of the CARICOM Arrest Warrant Legislation; the Draft Agreement Establishing the Caribbean Public Health Agency (CARPHA) and the Memorandum of Understanding on Procedures Related to the Deportation of Criminal Offenders.

Participants will also consider the Reports on the Fifth Meeting and Sixth SOLAC Meetings in Trinidad and Jamaica respectively; the Report on the Meeting of Officials on Institutions and Associate Institutions in Barbados; Maritime Delimitation of CARICOM Members; Examination of Possible Maritime Boundaries and Baselines of CARICOM Members; Treaty Law and Practice Seminar set for the Bahamas in July and Matters of the
Practice of Law in CARICOM.

Also down for discussion are papers related to Law School Interns for Legal Services/Office of the General Counsel CARICOM Secretariat; Audit of CARICOM Legislative Drafting Facility (CLDF) Instruments; Update on Draft Agreement on Jurisdiction and Enforcement and Judgements in Civil and Commercial matters and Draft CARICOM Financial Services Agreement and CARICOM Investment Code and Riles of for Organs and Bodies and Revised Rules of Procedure for the Legal Affairs Committee as well as on the upcoming Intellectual Property Meeting.

There will also be a demonstration of the CARICOM Law Website and updates on the Reconstitution of the Inter-Governmental task Force for the Revision of the Revised Treaty of Chaguaramas.

Related posts:

1. UN Committee On Decolonisation To Meet In St. Kitts
2. St. Kitts – Nevis Land Distribution Committee To Meet
3. Caribbean and US Officials To Discuss Security Issues
4. St. Kitts – Nevis National Assembly To Meet
5. Committee To Look At Granting Nevis Greater Autonomy

The Union Jack Flag

Basseterre, St. Kitts – Nevis
April 07, 2010 (CUOPM)

The Government of St. Kitts – Nevis is among five in the Eastern Caribbean whose nationals will continue to enter the country without a visa.

The four other affected countries are Antigua and Barbuda, Barbados, Grenada and St. Vincent and the Grenadines.

British Home Secretary Hon. Alan Johnson, in a statement published on the British government website, said London had written to the five governments “to advise that, while they will maintain their visa free status for the time being, the decision will be subject to a further review.”

Mr. Johnson said that in addition to those five countries, London has also written to the Dominica and St. Lucia governments, highlighting a number of concerns and giving them a six-month period to deal with them.

Britain said that the review of the Eastern Caribbean countries represents the final stage of the United Kingdom’s first global review of visa regimes in relation to the seven countries.

“A visa regime is a very effective immigration, crime and security control measure. As part of our overseas defences our Visa Waiver Test helps us determine whether our visa regimes are in the right places. Travellers from every country beyond the European Economic Area and Switzerland were measured against a range of criteria including illegal immigration, crime and security concerns,” he said.

The Home Secretary noted the close historic, economic and political ties with Dominica and St. Lucia and said London was aware that the introduction of a visa regime would be a significant step.

“It is a decision we do not take lightly,” he stressed.

“As a result we will now enter a six-month period of detailed dialogue with the governments concerned to examine what actions will be taken to address our concerns and mitigate the need for a visa regime to be introduced,” Johnson said.

He explained that during that time, Dominica and St Lucia “will need to demonstrate a genuine commitment to put into effect credible and realistic plans, with clear timetables, to reduce the risks to the UK, and begin implementing these plans by the end of the dialogue period”.

The Home Secretary said that the United Kingdom government remains committed to operating a firm but fair immigration policy.

“It gives a high priority to treating all foreign nationals coming to or present in the UK with dignity and respect, and the highest legal standards. However, it expects all visitors to the UK to play by the rules.

“The UK will always welcome genuine visitors, whether business, tourist, student or family, but will continue to take all steps necessary to protect the security of the UK,” he added.

Related posts:

1. Visa Free Travel To St. Kitts and Nevis
2. St. Kitts – Nevis And EU Sign Visa Waiver Agreement
3. Caribbean Tourism Seeks To Quell Fears About Caricom Visa
4. Waive Visa Regulations Longer, Says Caribbean Tourism Group
5. St. Kitts – Nevis To Discuss Duty Free Policy