The Consumer Affairs Department is actively monitoring the market to ensure that consumers benefit from the recent VAT reduction from 17 to 13 percent, which took effect on 1st January, 2025. This initiative aims to ease financial burdens and enhance affordability for households across St. Kitts and Nevis.
A preliminary market assessment by the Consumer Affairs Department has revealed encouraging results, with several retailers reflecting lower prices across various product categories. The data shows that standing and ceiling fans have seen an average price reduction of 3.5 percent, while air conditioners have decreased by approximately 3.4 percent. Notably, steel bars, a key material in construction, have experienced an average price drop of 14 percent.
The Department has acknowledged that while several major retailers have adjusted their pricing to reflect the lower VAT rate, routine market surveillance will continue to ensure that all businesses comply and that consumers receive the full benefits of the policy.
PM Drew Reaffirms Commitment to Consumer Protection
Minister of Finance, Prime Minister Dr. Terrance Drew, has reaffirmed his administration’s commitment to consumer protection and expressed appreciation to businesses that have been proactive in adjusting their prices.
“This VAT reduction was implemented with the people of Saint Kitts and Nevis in mind—to make everyday goods more affordable and ease the cost of living. I commend the retailers who have already passed these savings on to their customers, and I encourage all businesses to follow suit. Together, we can ensure that the benefits of this policy reach every household in our Federation,” he stated.
Ongoing Monitoring and Consumer Awareness
The government remains steadfast in its commitment to economic policies that support affordability and consumer rights. The Consumer Affairs Department will continue its market surveillance efforts and encourages consumers to remain vigilant, report discrepancies, and support businesses that uphold fair pricing practices.
The administration urges all businesses to fully implement the VAT reduction in their pricing, ensuring that all citizens benefit from this pro-consumer policy.
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