en | hu | ru | bg | ro | tr FacebookTwitterGoogle+LinkedInYouTubeInstagram
+ 357-24-636-919
+ 44-20-7556-0900

Sign up for a free consultation
Subscribe to our newsletter
Request a return call
Downloadable brochures
Request a brochure
5 Minutes Offshore
How to order a company from LAVECO Ltd
Latest news
Currency exchange rates: USD/1 unit
HUF 0.004
GBP 1.3963
CHF 1.0589
RUB 0.0176
HKD 0.1276
JPY 0.0094
CNY 0.1582
CAD 0.779
AUD 0.7893
BRL 0.3084
EUR 1.2378


St Kitts Lauds Role Of VAT In Economic Turnaround


In a recent economic update, the Government of the Caribbean territory Saint Kitts and Nevis has acknowledged the role that VAT has played in stabilizing the territory's finances and economy.

The Government reported that the territory's economy is gradually recovering from the financial crisis; preliminary figures show that the economy contracted by just 0.9 percent of gross domestic product in 2012, rebounding strongly after three years where the economy contracted at an average rate of 3.2 percent per year. The IMF estimates that economic growth will be restored this year, with an expansion worth 2 percent of GDP expected.

Commenting, St Kitts and Nevis's Prime Minister and Finance Minister, Denzil Douglas, said: "This positive report is confirmation of the success of our carefully-executed economic plan that has placed priority on the continued diversification of our economy and the provision of stimulus packages where required to counter the negative effects of the global slowdown in preparation for a solid rebound."

Inflation has moderated since the implementation of a VAT, he pointed out. During the first sixth months of this year, inflation fell to 0.6 percent, down from 1.4 percent recorded during the same period in 2012.

Likewise, the territory's deficit has fallen considerably since the onset of the financial crisis. In 2009, St Kitts and Nevis's public debt stood at 185 percent of GDP, placing it among the world's most indebted territories relative to the size of its economy. Following the implementation of value-added tax, considerable tax reform and debt restructuring, the territory's public debt-to-GDP ratio has fallen into double figures. In July, the International Monetary Fund recommended that the Government review tax expenditures to broaden the tax base, and lock in fiscal gains.