NIA CHARLESTOWN, NEVIS –The Nevis Island Administration (NIA) will strengthen its fiscal framework in 2026 through enhanced revenue collection and tighter expenditure controls, Premier and Minister of Finance, the Honourable Mark Brantley, announced during his Budget Address on December 02.
Premier Brantley outlined that the government will continue targeted enforcement measures to ensure the timely payment of taxes and reduce arrears across departments. He said the policy of linking various government services and concessions to good tax standing will remain central to the Administration’s strategy.
“As a measure of enforcement to foster the timely payment of taxes and reduce arrears of revenue at the various departments, we will continue our policy of linking the renewal of various licenses issued by the Inland Revenue Department to the payment of taxes owed… We urge everyone to ensure that they immediately make payment for all taxes that are in arrears or enter an instalment payment plan with the Inland Revenue Department.”
He further reiterated that corporate entities must be compliant before accessing government incentives.
“Corporate entities which are in arrears must first regularize their tax status with the Inland Revenue Department before applying to the Ministry of Finance for concessions on equipment or vehicles for business purposes.”
Additionally, all businesses conducting transactions with the NIA will be required to submit a Tax Clearance Certificate confirming their tax status.
The Premier also announced the continuation of policies linking business license renewals to good standing at the Companies Registry and compliance with tax filing obligations for Unincorporated Business Tax, VAT, and Corporation Tax. He reminded the public that the longstanding practice of granting waivers on penalties and interest for late payments has been discontinued, noting instead that instalment options are available and must be honoured.
“We continue to make a concerted effort to persuade our people to be responsible citizens and to honor their tax obligations… I again encourage all taxpayers to be responsible citizens and to file and pay your taxes on time.”
In relation to the tourism sector, the government will tighten concessions. Concessions on daily food items, wines, liquor, and supplies for hotels and restaurants will be discontinued effective March 01, 2026, and restricted only to furniture and equipment purchases.
Premier Brantley explained that the sector has rebounded significantly since the pandemic and “there is no need to continue to grant this expansive level of subsidy via concessions.”
The NIA will also refine its overall concessions policy to ensure exemptions are limited to what is permissible under legislation, Cabinet policy, or specific short-term economic stimuli. Duty-free concessions on vehicles will no longer be automatically granted to business license holders; they will be considered only when the car is essential to the business’s core function.
“The deciding test, as always, will be whether in the absence of the vehicle the business’s core functions will cease to exist,” he explained.
In addition to improved revenue enforcement, the Administration will implement measures to curb expenditure and eliminate wastage across government operations.
“Even as we implement these fiscal measures regarding revenue collection, we must also be responsible as a government and streamline our expenditure to avoid waste, duplication and overpayment for services rendered to Government,” the Premier stated.
The NIA will continue the restructuring of social assistance programmes to ensure they reach the most vulnerable, including single parents, the elderly, and persons with low incomes. Means testing will be applied across all social programmes to ensure scarce resources are directed to those most in need.
Travel expenditure will also be further controlled. The Premier stated that government-funded travel for public servants and Cabinet members will be limited to critical engagements or cases where travel costs are fully covered by external agencies.
The Administration will substantially reduce funded vacant positions within the Public Service in order to narrow the budget deficit. Only essential posts and positions for officers expected to return from leave in 2026 will remain fully funded. The hiring of new staff will be minimized, with priority placed on redeployment within the service.
Additionally, the NIA will realign the Non-established Workers Pension Scheme in accordance with the Pensions (Amendment) Act, 2025, ensuring pension calculations and benefits are consistent with new federal standards.
The Premier also highlighted the continued growth of the Nevis economy, noting that the economy has now rebounded to pre-pandemic levels, with strong growth and high employment across all major sectors. Given this recovery, he explained, and with that relief having been in place for five years, the Administration considers it appropriate to revisit the adjustment of the Unincorporated Business Tax (UBT).
He advised that the government has approved the reinstatement of the UBT to its original rate of 4 percent of gross income, effective January 1, 2026. The rate had been temporarily reduced to 2 percent during and after the pandemic to support businesses.
Premier Brantley indicated that the combined reforms represent a proactive and responsible approach to fiscal management. He said the NIA will continue implementing policies to strengthen revenue generation, streamline expenditure, and ensure that government resources are used effectively for the long-term benefit of the people of Nevis.