PRIME MINISTER DR. TERRANCE DREW ANNOUNCES MAJOR ECONOMIC RELIEF MEASURES TO EASE COST-OF-LIVING
Targeted tax cuts, fee reductions and VAT holidays put money back in the pockets of citizens
Basseterre, Saint Kitts (April 14, 2026) – In a national address delivered Tuesday morning (April 14), The Honourable Dr. Terrance M. Drew, Prime Minister of Saint Kitts and Nevis unveiled a suite of bold, targeted economic relief measures designed to ease the financial burden on households, motorists and small businesses across the Federation.
Effective April 20, 2026, the Government of Saint Kitts and Nevis is implementing four key interventions, absorbing millions in revenue to ensure that the cost-of-living does not outpace the dignity of our people.
The relief package includes:
- 50% reduction in excise tax on gasoline – from EC$1.95 to EC$0.98 per gallon (Government absorbs EC$1.2 million)
- Reduction of Customs Service Charge (CSC) on gasoline from 6% to 3% (Government absorbs EC$600,000)
- Alternative energy equipment – including solar PV panels – made 100% free of value-added tax (VAT), CSC, and Import Duty (Government absorbs EC$405,000)
- Shipper surcharges excluded from Customs tax and duty calculations
In his address, Prime Minister Drew acknowledged the global headwinds facing Developing States like Saint Kitts and Nevis but reaffirmed his St. Kitts-Nevis Labour Party administration’s commitment to shielding citizens and residents where it can and empowering them where it must.
“Even as we build for the long term, we hear your struggles in the short term. These are not gimmicks. These are genuine, targeted interventions to put money back in your pocket, to keep your lights on, to keep your vehicle moving and to help you breathe a little easier in a stormy world,” stated Prime Minister Drew. “Your Government chose relief over revenue – because when our people can breathe, our economy grows.”
Prime Minister Drew also reiterated that these measures are part of the broader Sustainable Island State Agenda (SISA) and the Sustainable Economic Expansion and Diversification (SEED) economic diversification strategy – a deliberate pivot away from over-reliance on Citizenship by Investment toward a more resilient, inclusive and productive economy.
The Government continues to urge businesses, particularly importers and retailers, to ensure that these savings are passed directly to consumers.
These relief measures are effective from April 20 through July 31, 2026, with the alternative energy equipment policy extended to December 31, 2026, and Discounted VAT Rate days scheduled throughout the year.
The people of St. Kitts and Nevis are reminded that no one will be left behind. Progress is real. Transformation is underway. And your Government is working – every day – for you.
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