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Government Welcomes Constructive Input, Collaboration From The Opposition


The Prime Minister, Hon. Philip J. Pierre is in receipt of an Open Letter from the Leader of the Opposition calling for the suspension of the 2.5%levy for health and citizen security.

At the appropriate time, the Prime Minister will address in full, the contents of this missive by the Leader of the Opposition but wishes to reiterate the facts on the 2.5% Health and Security Levy.

We are encouraged that the Leader of the Opposition has acknowledged the growth achievements of this administration by highlighting the positive developments in the economy, however, it is important to note that sustaining this growth requires prudent fiscal management and diversified revenue sources.

The introduction of the 2.5% levy is one such measure that aims to support our economy and provide necessary funding for essential services, namely health and security as the Prime Minister identified in his 2023/2024 budget address.

We once again take this opportunity to state that the 2.5% health and security levy will not be on food items, medication, medical equipment, security equipment, and selected building material.

Therefore, we do not expect there to be an increase in the price of these items at their point of purchase locally unless prices increase overseas.

All items which traditionally did not attract taxes will continue in this regard; therefore, the levy will not affect the price of petroleum products, zero-rated or VAT-exempt products, utilities, or tourism products.

This government has further expanded the zero-rated or VAT-exempt basket of goods. Additionally, VAT will be removed on the following building supplies for two years: plywood, lumber, steel, cement, and galvanise.

This strategic policy by the government has been well received by the public and will drive demand in the construction industry. This new economic activity will be supported by the construction of four [4] hotels accounting for investment of XCD 341.6 million; a feat which eluded the administration of now Leader of the Opposition, Allen Chastanet.

The health and security levy is a necessary measure to ensure that the burden of economic recovery is shared equitably among all stakeholders. It is not a standalone solution to addressing the burdensome debt that this administration now has to honour, but part of a comprehensive approach to strengthen our economy and improve the lives of our citizens.

The government will continue to roll out its Universal Health Care programme and improve the quality of health services at our institutions. The police will continue to benefit from the reinstatement of the Training Vote, equipment, and vehicles to assist in citizen security

The government remains committed to prudent fiscal management, sustainable growth, and the well-being of all citizens. We welcome constructive input and collaboration from the Opposition to ensure the best outcomes for our country.

SOURCE: Office of the Prime Minister

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  1. the brother don’t want the country to continue moving forward. this is not good politically for the brother and his yellow breast birdies.

  2. Long live the litany of social policies already released and continue to be…

    This is mature politics policies to benefit all the people.

    Am patiently waiting to hear of by-partisan collaboration on the completion of St Jude and crime as whole.

    What was the last project which had a by-partisan approach??! We need to move away from this banana republic, chicken and rum politics.

    If two political parties can’t come together on pressing national issues then that means the politicians (both) are perpetuating our stagnation.

  3. Delusionist … want the government to tax us out of existence?you think it takes taxes to move the country forward? I think you should educate yourself.

  4. when are they going to remove the vat on these items for building for the two years does anyone know?

  5. Re Article, Just asking? Why should we listen to the opposition? Judas was very close to the Messiah..

  6. PJP sounds good on paper, and verbally … I sincerely hope his tax plan materialises into the good of the public.

    As usual, no dates implied, no periods implied … this is critical to have dates/periods stated.

  7. the prices of food WILL increase because some of the other products used to produce/prepare the food, will be subject to the levy….. production costs will increase and the vendors will have to make their shortfall through sales


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