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Pierre Announces Service Charge Removal, VAT Cuts on Essential Goods

Prime Minister Philip J. Pierre unveiled consumer relief measures at Monday’s pre-Cabinet press briefing, scrapping the 6.5 per cent service charge on price-controlled goods and pledging VAT removals on select products by July 1.

The immediate elimination of the service charge is expected to reduce prices on essentials such as baby food, cereals, cement, dairy products, edible oils and agricultural goods, provided import costs remain stable. 

“This means that the cost of these controlled items should decrease by six and a half per cent if there’s no increase in cost from the imported country,” Pierre told reporters.

A second phase of cuts will take effect in July, with the 12.5 per cent VAT abolished on unspecified product categories following consultations with the business sector. 

“We are discussing right now with the Chamber of Commerce, and the 12.5 per cent VAT on several categories of products will be removed, which will lead again to an immediate reduction in the price for the consumer, once the cost has not increased from overseas,” the Prime Minister said.

He thanked business leaders and the Ministry of Commerce for their collaboration.

Price-controlled goods include: baby food, baby fruit juices, cement, cereals, cornflakes, cornmeal, oats, cheese, powdered chocolate, cocoa, corned beef, wheat flour, garlic, margarine, mackerel, evaporated milk, edible oils, onions, peas and beans, potatoes, powdered soup (400g or less), packaged rice, salt biscuits, sardines, tuna, soap, toothpaste, and all agricultural products that fall under price control.

Denial of election motives

When pressed on whether the moves were tied to elections, constitutionally due by mid-2026, Pierre dismissed the suggestion, pointing to his administration’s record.

“Look at our history,” he responded. “Look at the things we began to do from our first year in government and make a checklist. This government promises, and this government delivers. We don’t deliver for elections… I can assure you that these things are for the development of the people of Saint Lucia.”

Though he acknowledged elections as an inevitable political reality, Pierre insisted: “These are not for elections, these things are for people.”

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7 COMMENTS

  1. Ummm. Protect the Victory Mr. Pierre at all costs. Even it means listening to the opposition and doing what they said. Mr. Pierre after a month we want u to provide an update showing previous & after cost to the consumer. Who knows the chamber may well lv prices the same and simply be making more profit or are u referring to these ppl in your statement, i mean the business owners. I wonder. Anyways ill be checking today’s prices and compare them in July.

  2. Nice try peep. Y’all realise the fixing roads just before elections ain’t working no more so new tricks to fool the masses. Prices started rising in 2021. In 2025 you want o give us relief? Not falling for that garbage bro.

  3. ..,,,,,,,,.AND. ??? Election motives or not in these hard times and the way things are running in Trump’s World WHO CARES…….the working poor of this country does not care….:… as if to say EVEN if he did none of the above the opposition act as if they stood a whisker of a chance of getting reelected. Hello ! DSH awww do tell ??? St Jude’s ???

  4. Wait isn’t that the same Pee ear that put that 2.5% levy on us bringing VAT to 15%?

  5. Every thing this Labor Party does to assist the poor people of St.Lucia UWP hacks have a problem with it. Does it mean that UWPs have a hatred for the poor Lucians? Wow

  6. @Josephine Antoine you know very well its not about helping the poor but protecting the victory at the eve of a general election.Did they thought about it when they placed the 2.5 levy increasing the prices on goods and services? Some of you all pretend to be blind but some of us are’nt.

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