The rate of Value Added Tax (VAT) in St. Vincent and the Grenadines has increased by one percentage point to 16% as of May 1st 2017.
This increase in VAT from the current rate of 15 % was among a number of tax measures announced by Prime Minister and Minister of Finance Dr. Ralph Gonsalves in his 2017 National Budget Address in February.
The rate for accommodation and other tourism related activities has also increased from 10% to 11%.
Dr. Gonsalves said the revenue yield from this measure is estimated at EC$10 million per year.
Comptroller of the Inland Revenue Department Kelvin Pompey says officials from his department will be visiting businesses from today May 2, to see that the 1% change in VAT has been effected and to give the necessary support to businesses.
Mr. Pompey said the Inland Revenue Department will be collaborating with the Department of Trade and Consumer Affairs Division to ensure that the price change of products within supermarkets and other retail establishments reflects that 1 percentage change in VAT and nothing more.
Meanwhile, Mr. Pompey is urging consumers to check their VAT receipts and invoices to ensure that the new change in VAT is being properly accounted for by businesses.