GOVERNMENT OF ST. KITTS AND NEVIS TAKES BOLD STEPS TO EASE FINANCIAL PRESSURES AMID GLOBAL INFLATION
Basseterre, St. Kitts, January 08, 2025 (SKNIS): Inflation continues to pose significant challenges worldwide, but the Government of St. Kitts and Nevis, under the leadership of Prime Minister, the Honourable Dr. Terrance M. Drew, has taken decisive action to cushion the impact on its citizens and residents. With the announcement of the 2025 Budget Address, the administration has introduced innovative measures designed to support households, increase disposable income, and provide essential relief.
“In the face of global inflation, no country is excluded,” said Prime Minister Drew during the first RoundTable of 2025 on Tuesday, January 07. “We have sought to bring forward policies to ease the difficulties and challenges faced by our people. This includes increases in salaries, the minimum wage, and the minimum pension amount, as well as substantial subsidies for electricity, water, and social programmes.”
The government has allocated $320 million to essential subsidies and social programmes, demonstrating its unwavering commitment to protecting the most vulnerable. As part of these measures, the Budget Boost Wallet (BBW) has been introduced, providing eligible individuals earning $5,000 or less per month with $250 per month for the first six months of 2025. This innovative initiative offers direct financial assistance to low and middle-income households. Additionally, a Value Added Tax (VAT) Relief Holiday has reduced VAT from 17 to 13 percent for the first six months of 2025, offering meaningful relief to consumers and businesses alike.
Further, the national minimum wage will see an increase to $500 per week effective July 01, 2025, ensuring that workers can better meet their needs. The government has also extended the “Build & Thrive” incentive until December 31, 2025. This programme provides no import duty, no customs service charge, and a reduced VAT rate of 13 percent for renovations and repairs up to EC$500,000. Subsidies for electricity, water, and essential social programmes such as the L.I.F.T. Programme and ELEVATE will continue, ensuring that families and individuals receive the support they need. Moreover, two tax-free Citizenship by Investment (CBI) dividends were issued, marking a historic achievement for the programme.
“So it’s a very fine line between maintaining revenues and giving as much support and relief to our people as possible. but as I’ve said, our people are always number one. So this administration has responded positively,” affirmed Prime Minister Drew, during the RoundTable on January 07, 2025.
The measures outlined reflect the government’s commitment to reducing the cost of living and ensuring a better quality of life for all citizens and residents. These initiatives are part of a broader strategy to promote equity, resilience, and economic growth in St. Kitts and Nevis.