An Increase in VAT among fiscal measures announced

An increase in the Value Added Tax (VAT) from 15 per cent to 16 per cent and the rate for accommodation and other tourism related activities from 10 per cent to 11 per cent was announced this evening by Prime Minister Dr. Ralph Gonsalves as he made his 2017 Budget Address.

The rate of VAT for rental of a berth in any marina or shipyard will be reduced from the standard 16 per cent to 11 per cent, while the VAT charged on biodegradable packaging and food containers will be removed.

The changes to the VAT rates will take effect from May 1, 2017.

Additional fiscal measures announced include an increase in fees payable under the Professions Licensing Act by twenty per cent; an increase to the Airport Service Charge on passengers departing by aircraft from St Vincent and the Grenadines to EC$100.00 (US $40.00) from February 15; and an increase the Alien’s Landholding Licence Fee.

The two per cent levy introduced in 2016 on telephone calls originating from St Vincent and the Grenadines will also now be applied to incoming calls and data. This measure becomes effective from March 1, 2017.