Gov’t urged to waive VAT on building material for use in the Grenadines

A Union Island man is asking the government to waive temporarily the 16% VAT on building materials to be used to repair buildings in the Grenadines that were damaged by Hurricane Beryl.

Leo Alexander made the call via iWitness News after noticing last month that a significant amount of the money he spent to repair the roof of his mother’s house was taxes.

Alexander, who is based in the United Kingdom, said he decided to repair his mother’s home in Union Island.

“… it’s taking too long and because we have a water problem down there, the dry season soon come, Christmas is coming so it’s essential for me to be a bit proactive and do it myself,” he told iWitness News in November.

“And what I found out, the VAT itself that they’re charging right now could pay the workman to fix my mom’s house,” Alexander said. 

However, one quotation for building material from a hardware store in Kingstown showed that of the EC$6,156.78 total, EC$849.21 was VAT.

Alexander visited Union Island in September, two months after the Category 4 cyclone damaged or destroyed 90% of the buildings in the Southern Grenadines.

“My concern is regarding the 16% VAT … The government should have considered persons in the Grenadines and thought to themselves that would be an incentive to help persons who so wish to put back their roofs themselves or do major or minor repairs on the properties,” he told iWitness News.

The government has said it would repair or rebuild homes for all the people impacted by the storm but has urged people who can afford it to repair their homes themselves.

Alexander told iWitness News that while he is in a position to pay the VAT, it could deter other people from repairing their homes.

“… the government can win from this. … You’re not gonna win equally if you give persons incentives to fix their roofs if they so choose to do it,” he told iWitness News.

“So, I’m thinking the government or somebody should look into these things, even if they do it up to Christmas to say we would void the VAT for Grenadines people who are looking to do minor, major repairs on the properties as a result of the hurricane.”

Alexander acknowledged that the government might respond by asking how to verify that the building materials on which VAT was waived would be used in the Grenadines.

“I have had a good thought about it, and I thought to myself the only way they can know is by the identification so persons can then present their IDs to show they’re actually from the Grenadines,” he said.

He mentioned an experience he had in St. Vincent during his visit in September, in which electoral officials were able to prove that he was from the Grenadines.

Alexander told iWitness News that he mentioned his idea to an educator who said he had never thought about it although he had just spent over EC$20,000 repairing the roof of his house.”