The government has announced its approval for the usual duty concessions on food, gift packages and passenger allowances for the month of December. It also announced via press release Thursday that instead of the one Vat Reduction Day it gave for the past 4 years, this year they will revert to the two Vat Days in December, as had been done by the previous Labour Administration.
The allotted days will be announced at a future date after consultation between the Ministry of Finance and the Chamber of Industry and Commerce.
On Vat Reduction days consumers pay 5% value added tax on goods instead of the usual 17%. The discount does not apply to Vat-able services. For vehicle purchases, VAT is exempt on the first EC$50,000, with VAT at the standard 17 percent charged thereafter. In 2015, the government had approved the VAT exemption off the first $75,000, but reduced it to $50,000 since.
As it relates to the concessions on non commercial imports from December 1 to 31, gift packages of foodstuff up to 400 pounds in weight will be allowed free of duty and taxes, and travelers and non-commercial importers will receive a duty-free allowance of EC$540 or US$200 off the Cost, Insurance and Freight (CIF) value of goods.