In a significant parliamentary address, Nevis Premier Honourable Mark Brantley has issued a compelling call for comprehensive tax reforms within the Federation of St. Kitts and Nevis. Delivering his official response to the 2026 Federal Budget in the National Assembly, the Premier and Federal Opposition Leader urged the Drew administration to reconsider current taxation structures, particularly targeting Value Added Tax (VAT) and Customs Duty regimes.
Premier Brantley’s proposal centers on reducing the current 17% VAT rate, suggesting a gradual reduction to potentially 10% over time. His recommendations are grounded in observable economic patterns, noting that temporary VAT relief periods consistently generate substantial consumer activity and business engagement. The Premier referenced Nevis’s own experience with a six-month VAT reduction period, during which the island maintained stable tax receipts while experiencing increased consumption levels—indicating that lower rates might actually stimulate broader economic activity without diminishing government revenue.
Beyond VAT reform, Brantley advocated for restructuring seasonal duty-free concessions into a more equitable year-round system. He highlighted regional models where minimum threshold exemptions operate continuously, providing consistent relief to lower-income households rather than creating seasonal consumption spikes. The Premier emphasized that such innovative fiscal policies could drive sustainable economic development and growth across the federation.
While acknowledging his non-economist background, Brantley expressed confidence in local expertise, specifically mentioning the potential for collaborative analysis between the Ministry of Finance and the Chamber of Industry and Commerce to develop viable implementation strategies. His address framed tax reform as both an economic necessity and an opportunity to enhance the federation’s regional competitiveness, given that current VAT rates rank among the highest in the Caribbean region.