Leader of the St Vincent main Opposition party, Dr Godwin Friday, has called on the SVG government to cut the VAT rate by 50 percent.
Value Added Tax in St Vincent and the Grenadines is 16 percent.
Friday made the call on Sunday, February 13, as he addressed the 42nd convention of the party he leads, the NDP.
The Opposition leader said the economic conditions in SVG is growing untenable as the national debt has ballooned and hovers at 98 percent of the country’s Gross Domestic Product (GDP).
He said with a national debt almost the size of the country’s economy; the Value Added Tax needs to be reduced by half to lessen the rising cost of living for citizens.
Friday said there was no tax relief for the people of this country in the 2022 National Budget The NDP.
Persons who have businesses that are currently making gross sales of $120,000 per year are required to register for VAT according to the Value Added Tax Act of St.Vincent and the Grenadines. This requirement is mandatory for all businesses that would meet the threshold.
The person to be registered can be, for example:
A sole trader;
A partnership;
A company
An unincorporated entity; and
A service provider (e.g. Lawyers, Accountants, Contractors etc.)
The above categories of persons are required to apply for registration under the VAT Act on the last day of any month if their gross sales meet the threshold of $120,000 per year. In other words, if a business person is making, on average, gross sales, i.e.(sales before any expenses are deducted) of $10,000 per month, then that person is required by law to register as a VAT-collector and charger; and thus becomes an agent for the government.
The VAT Act also requires the following persons to register for VAT irrespective of their annual sales or turnover.
Promoters of public entertainment
Government entities
The local authority, council or similar body and other organizations
