Cost-of-Living Task Force Sets Priorities for 2025

The government of St. Kitts and Nevis has taken a significant step toward alleviating the rising cost of living by convening the first meeting of the 2025 Cost-of-Living Task Force. Held at the conference room of the Saint Kitts and Nevis Chamber of Industry and Commerce (CIC), this meeting marked an important development in the government’s ongoing commitment to addressing affordability challenges faced by citizens and residents.

The Cost-of-Living Task Force was established to offer evidence-based, actionable recommendations to the Cabinet, aiming to mitigate the factors contributing to the increasing cost of living. This initiative highlights the government’s dedication to ensuring that all individuals in St. Kitts and Nevis can maintain a reasonable standard of living, especially amidst global economic difficulties.

Key Focus Areas for 2025

Under the leadership of Dr. Marcus Natta, Cabinet Secretary and chair of the Task Force, the meeting laid out a comprehensive work plan with a focus on three critical priority areas for the first quarter of 2025:

Food Security and Agriculture: Developing strategies to increase local food production and reduce dependency on imports.
Private Sector and Trade Facilitation: Strengthening partnerships with the private sector to streamline trade processes and reduce inefficiencies.
Housing: Exploring measures to improve housing affordability and access for residents and citizens.

Dr. Natta stressed the importance of a collaborative and strategic approach in tackling these challenges. “The Cost-of-Living Task Force is committed to delivering practical solutions that will positively impact the lives of our citizens. By focusing on key sectors and working closely with stakeholders, we aim to foster a more resilient and affordable economy for all,” he stated.

Throughout 2025, the Task Force will also address other critical areas such as labour and employment, energy and utilities, and social support, ensuring a comprehensive response to the rising cost of living.

Recent Government Initiatives Supporting Affordability

In addition to its focus areas for 2025, the Task Force reviewed two recent initiatives designed to ease financial burdens on the population:

VAT Holiday: For the first six months of 2025, the government has reduced the Value Added Tax (VAT) from 17% to 13%, building upon its existing policy of zero VAT on food. This reduction is part of efforts to keep essential goods affordable for all.
Budget Boost Wallet Programme: This innovative initiative offers targeted financial assistance to qualifying individuals, further supporting the government’s commitment to affordability and economic resilience.

The Task Force also reiterated Prime Minister Dr. Terrance Drew’s call for businesses to ensure that savings from the VAT reduction are passed directly to consumers, maximising the benefits of these measures.

Building a Resilient Economy

The Cost-of-Living Task Force remains resolute in its mission to implement strategies that address the rising cost of living while fostering a sustainable and resilient economy. The outcomes of its work will play a pivotal role in shaping policies and initiatives that aim to improve the quality of life for all citizens and residents of St. Kitts and Nevis.

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