COVID-19 ECONOMIC STIMULUS PACKAGE

STATEMENT ON SOCIAL SECURITY BOARD EMERGENCY WAGE RELIEF FUND – RE COVID 19

March 26, 2020 

$120 million stimulus plan to protect and support our people

Closing its borders to all commercial airline flights from midnight 25 March 2020 until April 7th 2020

Additional $16.9m for our health system, on top of $62m already budgeted, to ensure our health system is ready

Postponement of the payment of Property Tax from June to September 2020

Removal of VAT and Import Duty for six months on relevant hygiene items

Removal of Import Duty and Customs Service Charge for six months on vegetables, fruits, fruit juices, cough and cold preparations, and vitamins

Waiver of payments for water consumption from April to June 2020 for individuals who have been laid off or experience a reduction in earnings as a consequence of COVID-19

Reduction of Corporate Income Tax rate from 33 percent to 25 percent for April to June 2020 for businesses that retain at least 75 percent of their employees

50 percent reduction of the Unincorporated Business Tax rate from 4.0 percent to 2.0 percent for the period April to June 2020

$10 million to boost production in the Agriculture Sector

Waiver of payments for the consumption of water by farmers for six months (April to September 2020)

Additional $5 million to support the Poverty Alleviation Programme

The Social Security Board will establish a special fund to assist with income support of up to $1,000 per month for workers whose income would have been impacted by COVID-19

Registered self-employed persons who can show that they have been impacted would also qualify

Provision of additional resources around $12.0 million to capitalize Severance Payment Fund

The Development Bank will facilitate loan repayment moratorium for six (6) months and the waiver of all applicable late fees and charges to support people impacted by the loss of income due to COVID-19

NHC will implement moratorium on mortgages for an initial period of 3 months in the first instance for affected homeowners

SKELEC and NEVLEC implement moratorium on payments for electricity services for affected businesses and individuals for a three (3) month period, April to June 2020

Continuation of Fresh Start Programme with an injection of $5 million

Provide funding for mortgage loans to citizens of St. Kitts and Nevis in the amount of $30 million

Reprioritize and accelerate the pace of implementation of approved Capital Projects that could have a direct positive impact on the economy