In his landmark 2025 Budget presentation, Prime Minister Dr. Terrance Drew unveiled transformative reforms to the nation’s Citizenship by Investment (CBI) Programme, positioning it as a global leader while reinforcing its role as a cornerstone of the national economy.
The restructuring of the Citizenship by Investment Unit (CIU) in 2024 into a statutory body with a robust Board of Governors, experienced C-Suite leadership, and the newly established Office of the Chairman has yielded significant results. This overhaul introduced streamlined processing mechanisms, a ten-week target for application decisions, and cutting-edge technology for tracking and monitoring applications, ensuring transparency and efficiency. Achievements such as increased applications and record-breaking revenue since the restructuring on 1st October underscore the Labour Administration’s vision and commitment to maintaining the Programme’s integrity and global competitiveness.
To further enhance the Programme’s appeal, a Communication Division was created to provide timely and accurate information, and a dedicated Task Force successfully eliminated backlogged files. These initiatives formed part of the “Thirty Wins in Thirty Days,” reflecting the Government’s determination to deliver swift and meaningful progress.
“Our actions were both necessary and timely,” said Prime Minister Drew in his Budget windup on 20th December. “Safeguarding the benefits of visa-free travel and ensuring our CBI Programme remains the best globally were non-negotiable. Today, I am proud to share that our programme ranks #1 worldwide for 2024.”
Driving Economic Diversification
Recognising the risks of over-reliance on the CBI industry, Dr. Drew emphasised the Labour Administration’s commitment to recalibrating the fiscal strategy to prioritise economic diversification. This shift aims to build resilience against external shocks while fostering sustainable revenue streams.
The Government’s approach includes enhancing tax compliance and reforming tax systems to improve efficiency. Efforts to recover $160.9 million in tax arrears, as highlighted by the National Audit Office, will play a pivotal role. Of this, $131.8 million is owed to the Inland Revenue and Customs and Excise Departments.
Key measures include reinstating the Income Tax Appeals Commission and the Property Tax Valuation Review Board. These entities will support taxpayers by ensuring transparency, efficient resolution of disputes, and compliance with tax obligations.
Modernising Tax Administration
The Drew administration has already reported results from modernising revenue collection. The Inland Revenue Department’s newly implemented SMARTS (Smart Modernised Administration for Revenue and Taxation System) offers online tax filing, real-time transaction updates, enhanced data security, and easy access to forms and documents.
Customs and Excise is also advancing with digitisation initiatives, further streamlining services for citizens and businesses alike.
Vision for Tax Reform
Dr. Drew further announced that tax reform will be a central focus in 2025 and beyond, aiming to create a fair, efficient system that accommodates emerging sectors, including the digital economy. Amendments to the VAT Act are being considered to ensure equitable contributions across all industries. Further information about these proposed changes will be announced in 2025 following a series of public consultations.
A Confident Future
Underpinning these reforms is the Labour Administration’s vision of innovation, inclusivity, and sustainability. The prime minister expressed confidence that the measures introduced by his government will strengthen public confidence in government systems, secure fiscal stability, and position St. Kitts and Nevis as a leader in both regional and global economic practices.
“We are building a future where every citizen and resident shares in the prosperity of our nation,” Dr. Drew concluded.
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