Nevis Government Implements New Revenue Measures to Achieve Fiscal Balance

During the 2024 Budget Address on December 03, Premier Brantley emphasized the importance of implementing new revenue measures and enhancing recovery efforts in 2025 to ensure fiscal balance.

New Revenue Measures to Achieve Fiscal Balance

Reflecting on the impact of the COVID pandemic, Premier Brantley noted that the NIA had implemented several concessionary measures to support businesses and individuals in their recovery. However, these concessions, while beneficial, resulted in a significant loss of government revenue.

“This fiscal year, we intend to be resolute and steadfast with our revenue collections,” he stated. “Our economy is now experiencing a rebound in economic activity in many of the major sectors. We believe it is time to reduce some of these concessionary measures and get our fiscal house back in order.”

Key Changes to Revenue Measures

The NIA’s 2025 revenue measures aim to streamline collections, reduce arrears, and align service fees with their associated costs.

Effective April 01, 2025, the NIA will implement updated fee structures for services offered by the Financial Services Department. Service Providers have been notified to allow adequate preparation.
Beginning June 1, 2025, the property tax rate on residential properties valued at EC$2 million or more will increase from 0.156 percent to 0.2 percent. This change brings Nevis in line with property tax rates on St. Kitts, ensuring uniformity across the Federation.
From June 1, 2025, the Tourism and Development Levy will rise from 2 to 3 percent, effective preparation for the 2025/2026 tourism season. As Minister of Tourism, Premier Brantley assured that discussions with hoteliers have ensured sufficient time for adjustments.

Changes to Tax Compliance and Concessions

Going forward, the NIA will link the renewal of licenses such as driver’s and business licenses to tax compliance, therefore these licenses will not be renewed until the government receives payment of outstanding taxes or upon the establishment of installment payment plans with the Inland Revenue Department.

Similarly, duty-free concessions for corporate entities will continue to be contingent on their compliance with tax obligations.

Businesses seeking to transact with the NIA or apply for concessions must present a valid Tax Clearance Certificate, and annual license renewals will depend on good standing at the Company Registry and compliance with tax filing requirements, including Value Added Tax (VAT) and Corporation Taxes.

Conclusion

Premier Brantley emphasized that the NIA is committed to making a concerted effort to persuade citizens to be responsible and honor their tax obligations.

“We remain resolute as we continue to make a concerted effort to persuade our people to be responsible citizens and to honor their tax obligations,” he emphasized.

He urged all taxpayers to meet their obligations promptly, stressing that government resources rely on equitable contributions.

“It is only fair that as individuals and business entities seek to benefit from the economic engagement with the Administration and on the island, they must pay their share of fees and taxes to allow Government the resources to further fund critical programmes. We therefore encourage all taxpayers to file and pay their taxes on time. All of us must be responsible citizens.”

FAQs

What changes are being implemented to achieve fiscal balance in 2025?

Effective April 01, 2025, the NIA will implement updated fee structures for services offered by the Financial Services Department. The property tax rate on residential properties valued at EC$2 million or more will increase from 0.156 percent to 0.2 percent, and the Tourism and Development Levy will rise from 2 to 3 percent.

How will the NIA ensure compliance with tax obligations?

The NIA will link the renewal of licenses such as driver’s and business licenses to tax compliance, and duty-free concessions for corporate entities will continue to be contingent on their compliance with tax obligations. Businesses seeking to transact with the NIA or apply for concessions must present a valid Tax Clearance Certificate.

What is the deadline for taxpayers to meet their obligations?

Premier Brantley urged all taxpayers to meet their obligations promptly, stressing that government resources rely on equitable contributions.