St Kitts and Nevis Prime Minister Dr Terrance Drew has announced a series of cost-of-living relief measures aimed at easing financial pressure on citizens, including fuel tax cuts and expanded VAT concessions.

During a national address on April 14, Drew said the government is responding to the immediate struggles of households while continuing to pursue long-term solutions.

Among the key measures, the excise tax on gasoline will be reduced by 50 per cent, dropping from EC$1.95 (EC$2.70 = US$1) to EC$0.98 per
gallon from April 20 to July 31, 2026. The government says it will absorb an estimated EC$1.2 million to offset the cost.

In addition, the customs service charge on gasoline will be cut from six per cent to three per cent over the same period, representing a
further EC$600,000 in government support.

Drew also announced expanded concessions on renewable energy equipment, with items such as solar photovoltaic panels to be exempt from VAT,
customs service charges and import duties until December 31, 2026.

The move is aimed at encouraging households to transition to alternative energy sources.

The government will also remove shipping surcharges from the calculation of customs duties, a step intended to prevent additional costs from
being passed on to consumers through what Drew described as “hidden fees”.

To provide more immediate relief, the prime minister confirmed the continuation of discounted VAT rate days throughout 2026.

These will take place on April 17 for the Easter period, August 28 and 29 for the back-to-school season, and December 11 and 19 for the
Christmas period, with vehicles included in the year-end initiative.

“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,” Drew said.

He also urged businesses to pass on savings from tax reductions to consumers, stressing that fair pricing would benefit both citizens and the wider economy.