NIA CHARLESTOWN NEVIS – The Nevis Island Administration (NIA) is reporting a strong start to the 2025 fiscal year, with key financial indicators pointing to solid economic momentum and prudent fiscal management.
Reports prepared by the Ministry of Finance for the first two quarters show that tax and non-tax revenues are trending upward, and both the primary and overall balances are in a surplus position, outpacing results for the same period in 2024 and 2023.
At his monthly press conference on July 22, Premier the Honourable Mark Brantley, who also serves as Minister of Finance, outlined the NIA’s fiscal performance from January to June 2025.
“The period January to June 2025 fiscal indicators paint a positive outcome for the period,” he stated. “Although the revenue generated for 2025 thus far is still below budgeted targets, revenue is trending upwards and continues to outpace results for 2024.”
Current Revenue for the six-month period reached $82.15 million, comprised of $60.83 million in tax revenue and $21.32 million in non-tax revenue. This represents a 12.53 percent increase, approximately $9.15 million, compared to the same period in 2024.
Premier Brantley highlighted the robust performance of the Value Added Tax (VAT), particularly at the Inland Revenue Department, noting that collections rose by 56.15 percent despite the federal government’s VAT Reduced Rate Programme, which ran from January through June. Although VAT collected at Customs decreased by 27.86 percent, total VAT receipts amounted to $22.68 million- an overall increase of 17.77 percent compared to the previous year.
He explained, “The indication then of an increase in tax revenue receipts in Nevis is really a good indication of how our local economy is performing… VAT, the Tourism Development Levy- there’s more activity. Those are taxes that apply in the context of the local economy. So to me, that’s a great indicator.”
Growth in tax revenue was also supported by strong performances from the Social Services Levy and Property Tax. Social Services Levy collections exceeded both the budgeted forecast and the 2024 figures, up by 4.5 percent and a substantial 76.18 percent respectively.
“Why is Social Services Levy important? As we all know, it’s a levy on wages, so it’s a good indicator of how the job sector is doing… not just the number of jobs, but the value of those jobs,” Premier Brantley said.
Property Tax receipts, while still below budgeted targets, have shown remarkable improvement- up 144.01 percent over the same period last year. Offshore Financial Services revenue also performed well, increasing by 11.68 percent compared to 2024, though it narrowly missed the budget target by 0.06 percent.
Premier Brantley underscored the significance of Nevis’ tax-based revenue model, especially in contrast to the larger inflows of Citizenship by Investment (CBI) funds available to the federal government.
“We do not have the comfort as our brothers and sisters in St. Kitts do of having a torrent of CBI money flowing into the economy. We get a fixed amount monthly and that is all that we get. I think the people of Nevis would understand that we do not have the comfort as our brothers and sisters in St. Kitts do of having a torrent of CBI money flowing into the economy. We get a fixed amount monthly and that is all that we get. St. Kitts, if that amount in terms of overall income is extremely high, then they have these buffers that that non- tax revenue provides.
“…Put differently, this is not being diluted by any flows of revenue that are coming from other sources. So when we say that tax revenues are up in Nevis, it really means that there’s more activity in the local economy.”
Meanwhile, the NIA has also managed to rein in spending. Total expenditure for the first half of 2025 fell by 12.53 percent or $13.76 million compared to the same period in 2024 and is down 15.45 percent or $17.56 million compared to budgeted projections.
“I just wanted to say that fiscally the island seems to be on the right path,” Premier Brantley concluded.