Government of St. Kitts and Nevis Announces Bold Measures to Combat Inflation 

As inflation continues to challenge economies globally, the Government of St. Kitts and Nevis, led by Prime Minister the Honourable Dr. Terrance M. Drew, has unveiled a series of initiatives aimed at easing the financial burden on its citizens.

The 2025 Budget Address introduced forward-thinking policies designed to support households, boost disposable income, and provide critical relief.

“In the face of global inflation, no country is excluded,” said Prime Minister Drew during the first Round Table of 2025 on Tuesday, January 7. “We have sought to bring forward policies to ease the difficulties and challenges faced by our people. This includes increases in salaries, the minimum wage, and the minimum pension amount, as well as substantial subsidies for electricity, water, and social programmes.”

The government has allocated $320 million to subsidies and social programmes, reinforcing its commitment to assisting the most vulnerable. A key initiative is the Budget Boost Wallet (BBW), which will provide eligible individuals earning $5,000 or less per month with $250 monthly for the first six months of 2025. Additionally, a Value Added Tax (VAT) Relief Holiday will lower VAT from 17% to 13% during the same period, benefiting both consumers and businesses.

Starting July 1, 2025, the national minimum wage will increase to $500 per week, further empowering workers to meet their needs. The “Build & Thrive” incentive has been extended to December 31, 2025, allowing for duty-free, customs-free, and reduced VAT rates for renovations and repairs up to EC$500,000. Essential subsidies for electricity, water, and social programmes like the L.I.F.T. and ELEVATE initiatives will continue to ensure comprehensive support for families and individuals.

Two tax-free dividends under the Citizenship by Investment (CBI) programme have also been issued, marking a milestone for the nation’s economic strategies.

According to the Prime Minister, these initiatives are part of a broader vision to foster resilience, equity, and sustainable economic growth in St. Kitts and Nevis.
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