VAT White Paper for St. Vincent and the Grenadines

The Government of St. Vincent and the Grenadines has decided to reform its taxation system by replacing the old inefficient general domestic consumption taxes with a modern and broad-based Value Added Tax (VAT) and a separate excise tax regime on a few selected goods, by January 2007. The need for reform was evident after studies on the indirect system identified weaknesses with the current system and recommended that changes be made in order to make it more efficient and appropriate for St. Vincent and the Grenadines to be able to successfully compete in the global environment.