The Government of Saint Lucia is set to introduce a Health and Citizen Security Levy, for a two-year period commencing Aug. 2, 2023.
This levy will be payable to existing VAT registrants who are responsible to remit to the Comptroller of Inland Revenue.
The Health and Citizen Security Levy will be implemented with the following rates:
- On Services: a 2.5% levy will be applied on the final service price for services provided within Saint Lucia, including applicable taxes on the supply of the service.
- On Goods: a 2.5% levy will be added to the cost, insurance, and freight value of imported goods. This levy will be payable to the Comptroller of Customs on imported goods.
It is important to note that certain goods and services will be exempted in accordance with the Health and Citizen Security Levy Act No. 16 of 2023.
Goods: The levy is applicable only to imported goods, however, there will be no levy applied to any good that is zero rated or exempt in accordance with the VAT Act. Additionally, the levy will not apply to goods provided by hotels and other providers in the tourism sector.
Services: There shall be no levy on any service that is exempt or zero rated in accordance with the VAT Act; or, is a service provided by hotels and other providers in the tourism sector.
As the implementation date approaches, the Government will be conducting informational campaigns to raise awareness and ensure a smooth transition for businesses and taxpayers.
Additionally, further details and guidelines regarding the Health and Citizen Security Levy will be communicated through relevant government channels and official announcements.
The Government of Saint Lucia remains committed to fostering an environment conducive to economic growth and prosperity, and the introduction of the Health and Citizen Security Levy is a significant measure in this direction. For further information, contact the IRD at 1(758) 468-4788/4714.
SOURCE: Inland Revenue Department
More tax in your @$$. Meanwhile roads are crap. Healthcare is garbage. Security is non existent. Why are we paying taxes and more taxes again?
It’s unfortunate that we could not use the money wasted by both parties on projects that have been stopped or stalled. They just wasting our money and then asking us to pay and we accept it.
All they do is give with the right hand and take back with the left both parties has been guilty of that , just fooling the people
Mr. PM
Thanks for this article. Now, can you list the benefits we will be getting from this.
Remember we are still waiting to hear what you did with the Passport money. Yes “CIP”!
My major problem with this government is that their policies with negative impacts affects the majority while their policies with positive impacts affects a minority… Removal of subsidies on flour- Cost of bread goes up. Impact-All, Refusal to allow a true pass through on the cost of fuel instead continuing to mass record revenue on fuel- Impact on cost of goods, busfares etc- Impact All… Health and Security Levy- Impact All…Health care for 80+ and pregnant mothers – Impact Some, Youth Economy- Impact Few..
Goods: The levy is applicable only to imported goods, however, there will be no levy applied to any good that is zero rated or exempt in accordance with the VAT Act. Additionally, the levy will not apply to goods provided by hotels and other providers in the tourism sector.
But the prices on these items will still go up cause the levy will apply to the inputs to produce and supply these levy free goods. Government should explain this to the ppl.
What about the removal of vat on building materials?
The greedy businesses will never pass on any savings to the consumer. Plywood VAT amnesty will have no impact. The same thing which the SLP government criticized about the 2.5% VAT reduction will also apply here. No business will reduce the price of it’s product. Price will remain and the 12.5% VAT will be kept as profit and not redeemed to the government. Simple maths SLP as explained by you in opposition.