Minister Liburd Elaborates On Financial Sharing and VAT.

SKN PULSE, Marcella Liburd in an interview  with E.K Flanders on the Good Morning Saint Kitts and Nevis Show via Freedom FM 106.5 elaborated on the Financial Sharing arrangement  between Saint Kitts and Nevis. Liburd eloquently stated that section 110 of the constitution speaks to how such undertakings should be handled. Specific mention were made of Articles 1 and 2 in that section which speaks to the collection, pooling, deduction and issuing of financial revenue.
Interestingly though, Liburd revealed that there haven’t been any pooling of resources for a while. She insisted and sought to ask that “when persons are talking what premise are they going on?” The nation ought to know that Nevis collects its own taxes and Saint collects its own share. According to Liburd, in yester-year when the Nevis Economy boomed and they were doing better than Saint Kitts there was an immediate stop to the pooling of resources.
Regardless of the stoppage though when VAT was introduced a similar pooling arrangement was organised. This time however a 76-24 percent arrangement was made. This meant that for every VAT dollar 0.24c went to Nevis and 0.76c went to Saint Kitts. Liburd stated that from the inception of VAT Nevis has not put in 0.24c for every dollar. Thus Nevis has been collecting more than they would have initially contributed. However, Nevis under the leadership of the CCM Administration discontinued their VAT contributions to National Bank. Thus, the pooling arrangement has been breached and according to unconfirmed financial data Nevis loses approximately $1 000 000 (Ec) every month.

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