Several pieces of legislation and resolutions cleared Parliament this week after being debated in the House of Assembly and approved by the Senate. Here’s a breakdown of some of the key measures and what they mean for Saint Lucians.
Tax break introduced for first-time land buyers
Parliament approved changes to the Income Tax Act, giving first-time landowners a new tax deduction on interest paid on loans used to purchase residential land. Eligible buyers can claim a 50 per cent deduction on interest paid for land measuring up to 22 000 square feet, provided the deed is registered on or after May 2, 2026.
VAT-free status for building materials extended
Parliament approved an extension of the VAT exemption on key construction materials until November 30, 2030. The measure keeps products such as cement, lumber, steel, aluminium and other building supplies free of VAT, helping to reduce construction costs for homeowners and the construction sector.
VAT penalties and interest temporarily waived
Parliament approved temporary relief for taxpayers with outstanding VAT liabilities by waiving both late-payment penalties and interest on eligible tax arrears. The measures apply to VAT owed for tax periods ending on or before December 31, 2025, with the relief remaining in effect until December 31, 2027. The move is intended to encourage businesses and individuals to clear outstanding VAT debts without incurring the usual penalties or monthly interest charges.
New Electricity Act modernises the sector
Parliament approved a new Electricity Act to replace the existing Electricity Supply Act, creating a modern legal framework for the regulation of electricity services in Saint Lucia. The legislation strengthens oversight by the National Utilities Regulatory Commission, establishes new licensing rules for electricity providers and self-generators, sets out consumer rights and obligations, provides for regular tariff reviews, promotes greater use of renewable energy, and updates the rules governing electrical installations and licensing.
Foreign nationals can now keep their original citizenship
Parliament removed the requirement for foreign nationals applying to become Saint Lucian citizens through naturalisation to give up their existing citizenship. The change means that eligible applicants can become Saint Lucian citizens while retaining the nationality of their country of birth or another country in which they are already citizens. They will still be required to take the Oath of Allegiance.
Government authorised to borrow for the 2026/2027 Budget
Parliament approved a resolution authorising the Government to borrow up to EC$905.5 million through the issuance of Treasury bonds. The borrowing includes EC$49.5 million to help finance the 2026/2027 national budget and EC$856 million to refinance existing government debt by replacing older Treasury bonds and Treasury bills with new ones. The borrowing will carry interest rates of up to seven per cent.
Funding approved for Sir Julian R. Hunte Highway and secondary roads project
Parliament approved a US$833 500 loan from the Caribbean Development Bank (CDB) to fund the planning and design phase of the Sir Julian R. Hunte Highway and Secondary Roads Improvement Project. The money will pay for consultancy services, including a feasibility study and detailed engineering designs, ahead of upgrades to the highway and selected secondary roads aimed at improving safety, resilience, accessibility and efficiency. The loan carries a fixed interest rate of 0.75 per cent and will be repaid over 20 years, following a two-year grace period.
Government guarantees loan for port development planning
Parliament approved a Government guarantee for a US$1.62 million loan being taken by the Saint Lucia Air and Sea Ports Authority (SLASPA) from the Caribbean Development Bank (CDB). The funding will pay for consultancy services, including studies and detailed designs for a new cargo port at Cul de Sac, as well as an assessment to support the digitalisation of Saint Lucia’s ports. The loan will be repaid over 20 years, following a two-year grace period, and carries a variable interest rate of five per cent.
US$37.75 million approved for renewable energy project
Parliament approved a resolution authorising the Government to borrow US$37.75 million from the International Development Association (IDA) to finance the Caribbean Resilient Renewable Energy Infrastructure Investment Facility Project. The funding package includes a combination of loans, credit and grant financing to support investments in Saint Lucia’s renewable energy infrastructure.
Funding approved for green-energy buildings project
Parliament approved a resolution authorising the Government to borrow the equivalent of 22.9 million Special Drawing Rights (SDRs) from the International Development Association (IDA) to finance the Caribbean Efficient and Green-Energy Buildings Project. The loan will be repaid over 40 years, including a 10-year grace period, and will help fund projects aimed at improving energy efficiency and promoting greener public infrastructure.
Funding approved for urban flood resilience project
Parliament approved a loan of approximately US$25 million (equivalent to 18.5 million Special Drawing Rights) from the International Development Association (IDA) to finance the Saint Lucia Urban Resilient Flood Investment Project. The funding will support projects aimed at improving the country’s resilience to urban flooding. The loan will be repaid over 40 years, with a 10-year grace period before principal repayments begin.
Additional funding approved for digital transformation project
Parliament approved an additional US$5.57 million in financing from the International Development Association (IDA) for the Caribbean Digital Transformation Project. The funding builds on a US$20 million loan approved in 2020 and will support the continued implementation of digital government services and other technology initiatives. The additional financing will be repaid over 40 years, including a 10-year grace period before repayments begin.
