ST.GEORGE’S, GRENADA, APRIL 13th, 2010: Prime Minister Hon. Tillman Thomas has welcomed the participation of the business community in the implementation of the Value Added Tax (VAT), which replaced the motor vehicle purchase tax, airline ticket tax and general consumption tax from February 1st, 2010.

The comments from Prime Minister Thomas on Tuesday, followed the announcement from Minister for Finance, Hon. Nazim Burke, in Parliament, that the implementation of the VAT has been “relatively smooth” with a 90% compliance rate and the collection of EC $7.2M in the first month.

“This high compliance rate will result in a more robust economy that can better support the government’s efforts at creating jobs for our people,” the Prime Minister said, adding that  the implementation of the Value Added Tax has brought immediate reduction in prices on selected items, including cement, eggs and honey, among others.

“The evidence thus far has supported our decision to overhaul our tax system in consultation with our partners, to broaden the tax base and equitably share the benefits that can be derived,” the Prime Minister said.

He said the final list of items exempted or zero rated from VAT, shows the administration’s decision making “puts people first.”

“The Value Added Tax, as implemented, is a reflection of our government’s consistent belief that the people’s voices must be heard. We believe this policy will help our people to better understand the part they play in the development of our country,” the Prime Minister said.

Prime Minister Thomas noted that improved revenues will allow the government to move forward with providing a higher level of service to the people of Grenada. He pointed out that the international financial community has consistently praised the government’s management of the economy