January 23, 2025 – Basseterre, Saint Kitts: The Cost-of-Living Task Force convened its first meeting for 2025 at the conference room of the Saint Kitts and Nevis Chamber of Industry and Commerce (CIC). The meeting marked a pivotal step in the government’s ongoing efforts to address the pressing issue of affordability for citizens and residents amid global economic challenges.
The Task Force has been established to provide the Cabinet of the Government of Saint Kitts and Nevis with evidence-based, actionable recommendations to mitigate the factors contributing to the rising cost-of-living. This initiative reflects the Government’s commitment to ensuring that all citizens and residents can maintain a decent standard of living.
During the meeting, the Task Force, chaired by Dr Marcus L. Natta, Cabinet Secretary, outlined its work plan for the year, with a specific focus on three priority areas for the first quarter of 2025:
- Food Security and Agriculture: Exploring strategies to boost local food production and reduce dependency on imports.
- Private Sector and Trade Facilitation: Enhancing collaboration with the private sector to streamline trade and reduce inefficiencies.
- Housing: Identifying measures to improve affordability and access to housing for citizens and residents.
Chairing the discussions, Dr Natta emphasised the importance of a collaborative and strategic approach to addressing these issues.
“The Cost-of-Living Task Force is committed to delivering practical solutions that will have a meaningful impact on the lives of our citizens. By focusing on key sectors and working closely with stakeholders, we aim to build a more resilient and affordable economy for all,” he stated. “Throughout 2025, we will also address other critical areas, including labour and employment, energy and utilities, and social support, to ensure a comprehensive approach to tackling the cost-of-living.”
The Task Force also examined two recent initiatives by the government aimed at easing financial burdens for citizens:
- VAT Holiday: For the first six months of 2025, the Value Added Tax (VAT) has been reduced from 17 to 13 percent. This reduction builds on the government’s existing policy of zero VAT on food, ensuring essential goods remain affordable.
- Budget Boost Wallet Programme: This innovative initiative provides targeted financial assistance to qualifying individuals, further supporting the government’s commitment to affordability and economic resilience. Learn more about the Budget Boost Wallet Programme.
The Task Force reiterated the call by the Honourable Prime Minister, Dr Terrance M Drew, for businesses to pass along the savings from the reduced VAT directly to consumers, ensuring that the benefits of these measures are fully realised by the public.
The Cost-of-Living Task Force remains steadfast in its mission to develop and implement strategies that address the challenges of rising costs, while fostering a more sustainable and resilient economy. The outcomes of its work will be instrumental in shaping policies and initiatives that enhance the quality of life for all citizens and residents of Saint Kitts and Nevis.
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