VAT White Paper
The economy of St. Christopher and Nevis has made significant strides in transitioning from an economy heavily dependent on sugar production to a services based economy with Tourism and Financial Services as the leading sectors. However, the present Tax System has not kept pace with the development of the economy and continues to be based to a large extent on the levying of duties on imported goods. This results in distortion and inequity in the Tax System which must be addressed. In addition to the transformation of the economy and the need to ensure harmony between the system of taxation and the economy we must also address the unfolding international pressures that favour free trade and the necessity for countries to open their borders.