In a historic moment during the Sitting of the National Assembly, Prime Minister Dr. Terrance Drew of Saint Kitts and Nevis unveiled a transformative initiative called “Independence 40 Reset.” This initiative, announced on Monday, September 18, 2023, aims to revitalize the nation while expressing gratitude to its hardworking citizens. Through a series of six key initiatives, the program seeks to foster economic growth, enhance living conditions, and acknowledge the invaluable contributions of the people of Saint Kitts and Nevis.
The Independence 40 Reset program comprises the following initiatives:
- Workers’ Reset: As a token of appreciation for their dedication and nation-building contributions, the government will provide a one-time payment of EC$1000 to contributors of the Social Security Fund. This initiative will benefit pensioners and active workers residing in Saint Kitts and Nevis. Registration is not required, and payments will commence this week, utilizing the banking details previously used for the Citizenship by Investment (CBI) Dividend payments. The bonuses will be financed through profits generated from Saint Kitts and Nevis’ CBI Program.
- Electricity Arrears Reset: Under the Independence 40 Reset, immediate reconnection will be granted to all residential customers of SKELEC who are currently disconnected. Citizens are encouraged to maintain regular payments, and SKELEC is available to assist with payment plans. Responsible energy consumption is also advocated to conserve energy resources.
- Water Services Reset: Residential customers currently disconnected from the Water Services Department will benefit from immediate reconnection under this initiative. The Water Services Department is ready to provide assistance with payment plans. Prime Minister Drew urged citizens and residents to make regular payments, avoid disconnection, and use water responsibly to preserve this vital resource.
- Housing Arrears Reset: The Independence 40 Reset includes significant relief for housing-related arrears. Prime Minister Drew announced the removal of penalties on arrears from the National Housing Corporation (NHC). Additionally, customers with outstanding mortgage balances will experience a reset to the principal amount. For those NHC customers who are up-to-date with their payments, the interest on their mortgages will be frozen until March 2024.
- L.A.N.D Reset: Under the Land Normalization Allocation and Distribution (L.A.N.D) Reset, strategic initiatives will be implemented effective September 30, 2023. These initiatives aim to alleviate challenges related to home ownership, mortgage access, and registration. Notable changes include a significant reduction in the interest rate on residential lands from 12% per annum to 6% per annum. Interest accrued on lots distributed between 1998 and 2022 will be removed, redirecting payments towards the principal or balance. Furthermore, interest rate waivers have been extended from two years to three years after land allotment. This means residential land applicants with outstanding balances will have until September 30, 2026, to settle their debts without added interest.
- Building Materials Reset: The Building Materials Reset, also known as the Build and Thrive Incentive, benefits first-time homeowners with a mortgage of up to EC$500,000 and homeowners seeking to renovate their homes. First-time homeowners will enjoy no import duty, no Customs service charge, and reduced Value Added Tax (VAT) at 13% for one year from the project approval date. Homeowners undertaking renovations or repairs costing up to EC$500,000 will receive similar benefits, including no import duty, no Customs service charge, and reduced VAT until December 31, 2024.
Prime Minister Drew emphasized that these initiatives underscore the government’s commitment to the well-being of its citizens and the sustainable development of Saint Kitts and Nevis. The Independence 40 Reset represents a bold step toward creating a brighter and more prosperous future for all.
