BASETTERRE, St. Kitts, April 25, 2008 – The consumption tax on a selected list of food and non-food items approved by the St. Kitts and Nevis Cabinet last month, will take effect from the first of next month.
Minister of State with responsibility for Information, Nigel Carty, said that “Cabinet mandated that effective May 1, 2008, the consumption tax be removed from…chicken, processed cheese, pasta, corned beef, sardines, tinned tuna, vienna sausage, margarine, ketchup, diapers (for babies and adults), and baby formula”.
The consumption tax on these items ranges from 15 percent to 22.5 percent.
Senator Carty said Cabinet had decided to press ahead with the implementation of the removal of the consumption tax, rather than the Common External Tariff (CET) which amounts to about a five per cent tax on a limited list of goods.
With the tax set to be removed, the minister sad, price control officers will be monitoring prices on supermarket shelves to ensure that they decrease as intended to benefit consumers.
Meantime, Senator Carty has revealed that the Denzil Douglas administration is still discussing the increasing price of fuel and the impact that this phenomenon is having on the overall cost of living.