Chastanet announces reduction in VAT

Chastanet announces reduction in VAT

Prime Minister, Allen Chastanet, has announced a reduction in the standard rate of Value Added Tax (VAT) from the current fifteen to 12.5 percent.

The long-awaited announcement came tonight as Chastanet delivered an address to the nation.

The reduction in VAT will take effect as of February 1, 2017.

The Prime Minister said this means that an estimated  52.5 million dollars a year will be  pumped back into the hands of the people of this country.

He revealed that tomorrow the various legislation to put in place the airport charge and the new VAT relief measures will come before the House of Assembly.

“In our manifesto we promised the people of Saint Lucia a restructured tax regime that will be less burdensome without compromising the revenue base and we aim to keep this promise,” Chastanet said as he announced the new measure.

He asserted that VAT affects all Saint Lucians every day.

“It has destroyed businesses and drained our people to the core,” the Prime Minister stated.

He explained that the decision to reduce VAT was not taken lightly.

Chastanet disclosed that his administration took time to review the current VAT system and commissioned a study by Ernst and Young to do a comprehensive review of the tax.

He said this was combined with a report from the Caribbean Development Bank (CDB) and discussions with various financial agencies such as the Eastern Caribbean Central Bank and the International Monetary Fund.

The PM said the government received several recommendations on reforming the VAT system.

“My brothers and sisters, they said it could not be done. Saint Lucia we have done it and we will do more,” Chastanet declared.

He promised that the United Workers Party (UWP) administration will continue to review the tax regime.

Chastanet gave the guarantee that the overall objective of  of his government’s tax policy is to  grow the economy and reduce the tax burden on the population, while making the tax system more business and investment friendly while ensuring fiscal sustainability.

 

 

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62 Comments

  1. Anonymous
    November 7, 2016 at 8:33 pm Reply

    Yea baby!

  2. smh
    November 7, 2016 at 8:34 pm Reply

    Lol. He fooling lucians as usually. I scare

    1. Anonymous
      November 8, 2016 at 9:04 am Reply

      Fooling Lucians how? Stop being a damn ass !

  3. Ti chas
    November 7, 2016 at 8:34 pm Reply

    Yea baby

  4. Trump
    November 7, 2016 at 8:35 pm Reply

    And like Domino’s, he delivers!?!?

  5. Anonymous
    November 7, 2016 at 8:35 pm Reply

    What is the new rate?????

    1. Anonymous
      November 8, 2016 at 1:10 am Reply

      what are you one of the illiterate ones?

      1. Anonymous
        November 8, 2016 at 3:03 am Reply

        I guess so they’re the ones who try to keep Slu down good job pm

      2. Smh
        November 8, 2016 at 8:50 am Reply

        👆🏻It’s called sacarsim @ Anonymous 1:10am. My 9 year old caught on. Smh when will we call a spade a spade…

  6. The Donald
    November 7, 2016 at 8:37 pm Reply

    This man is working and he is concern about the people of this country

  7. concern
    November 7, 2016 at 8:48 pm Reply

    Great job my pm. 12.5 that’s great

  8. super malt
    November 7, 2016 at 8:48 pm Reply

    i smiling

  9. Interceptor
    November 7, 2016 at 8:55 pm Reply

    The uneducated will buy will take that and run. But the educated will see how he bully Lucian by putting an airport departure tax to offset his VAT reduction. Whats a Scam.

    1. wow
      November 8, 2016 at 8:52 am Reply

      Tell me about it- too right. I have screen shot those comments come next year…. St.Lucians seem to be bipolar.

    2. Anonymous
      November 8, 2016 at 1:55 pm Reply

      How often your fly?

    3. Anonymous
      November 8, 2016 at 6:49 pm Reply

      A departure tax is good. Webdepend heavily on tourism. All those visitors leaving will pay something

  10. Anonymous
    November 7, 2016 at 9:01 pm Reply

    Thanks my pm

  11. U can't fool us
    November 7, 2016 at 9:03 pm Reply

    Gimmicks

  12. Anonymous
    November 7, 2016 at 9:03 pm Reply

    thanks Mr PM we deserve that break

  13. Samantha
    November 7, 2016 at 9:05 pm Reply

    Chasnet really think we stupid … You should take the whole 15 percent out .. Now u will hear juck bois beat his small (Word removed) on radio

  14. Samantha
    November 7, 2016 at 9:07 pm Reply

    Now juck bois will beat his (Word removed)

  15. Anonymous
    November 7, 2016 at 9:10 pm Reply

    Look out! The basket of goods without VAT will get smaller. VAT on electricity and water maybe.

  16. Chaseconomics
    November 7, 2016 at 9:30 pm Reply

    2.5 % i mean wdf, if i remember the campaign promise it was immediate reduction and ultimate removal of vat, i guess immediate means almost a year later, awa for dem mun, and since alot of zero rated items are now going to attract vat it will be like the 15% is still der, ha chastanet give wif 1 hand and take wif the other hand……..

    1. Be fair
      November 8, 2016 at 5:46 am Reply

      Are u crazy they’ve only been in power 5 months what year u talking about

    2. WOW
      November 8, 2016 at 9:54 am Reply

      Lol…..I was waiting on someone to say it. The farmers will feel the brunch of that reduction now their livestock and local vegetation will incur VAT. Lucians are so ignorant its amazing

  17. Anonymous
    November 7, 2016 at 9:32 pm Reply

    You st lucians are fools don’t you realise he will but it somewhere else. Watch and see

    1. WOW
      November 8, 2016 at 9:56 am Reply

      He has done that my love….its on the Zero rated items and departure tax

  18. Anonymous
    November 7, 2016 at 9:40 pm Reply

    you bitter losers Kenny had promise better days and he give alyoh bitter days youll asss was vex in silence now this son of the soil is delivering on his promise youll talking (Word removed) allan to the world

    1. Smh
      November 8, 2016 at 8:47 am Reply

      If you call this delivered – I wander what the complete removal of vat will be classed by you. From 15% -12.5% effective February 2017- seven months after coming into office. The point of the matter is the that Vat won’t be abolished – but instead will be have additional taxes i.e. Departure tax. We St.Lucians are too colour blind….smh

  19. Anonymous
    November 7, 2016 at 10:01 pm Reply

    Lucians greedy hungry thirsty they taking everything chastenet give them . Chastenet too dirty.
    Gullible are we

  20. Anonymous
    November 7, 2016 at 10:58 pm Reply

    Let labour party people pay vat that’s what they like the vat

    1. Anonymous
      November 8, 2016 at 8:04 pm Reply

      Thats what you come and say there? How dumb can you be

  21. Anonymous
    November 7, 2016 at 11:20 pm Reply

    Change is a way of life accept it you will soon grow to appreciate it.
    Good job Mr PM

  22. Illegal
    November 8, 2016 at 1:15 am Reply

    i don’t want to think that most st lucians haven’t travelled. but based on our response to the VAT i can’t think of anything else. People who have not travelled outside of St Lucia. Let me tell you that very few countries that you will go to that you won’t pay TAX. Call it VAT if u want but you pay tax on almost everything. Even the mighty USA where you all fighting to go whenever you shop there you pay TAX, so i don’t see why we as lucians so caught up in this anti VAT thing. or are we just a bunch of idiots with all the education that we have.

    1. Hate Idiots n Condescending Pricks
      November 8, 2016 at 1:26 am Reply

      You are the idiot. There is no need to travel outside of one’s country to be informed of their system. The cost of living is very high in St. Lucia with very little ‘programmes’ to assist the less fortunate. The system was new to us and thrust at a very high rate. So excuse us for speaking against what we perceive to be injustice.

    2. Anonymous
      November 8, 2016 at 6:48 am Reply

      Simply because St. Lucians are inexperience when it comes to global economy and are fooled by the upper class to get extra in their pockets. Upfront its a presentable reduction, however for the current ministry to fix St. Lucia’s so call problems the monies he’s losing from the “huge” cut will have to be taken somewhere else.

    3. Anonymous
      November 8, 2016 at 9:20 am Reply

      Never seen sales tax more than 9.5% anywhere in the US. That 15% was murder.

    4. SMH
      November 8, 2016 at 9:59 am Reply

      and with this airport tax increasing tickets, they never will…. so sad lol

  23. Anonymous
    November 8, 2016 at 4:09 am Reply

    all the descending voices must be labaas half a loaf is better than none Kenny came to take your money chas is giving it back one day at a time pep says it could not be done here it is so what bla bla bla bla bla

  24. Liberated
    November 8, 2016 at 5:31 am Reply

    The previous administration (SLP) plans were to add a 15% on vat if they won the election, therefore we would have been paying all now, 30% vat. What about that would you still be talking? Thank you our new government. The reduction is a blessings on the St. Lucian pockets. If you are so annoyed at the 12.5 % given, when you go to the grocery shops, please tell the cashiers to take 15% because you do not accept the government plan of the vat reduction

  25. Anonymous
    November 8, 2016 at 6:28 am Reply

    vat or not christmas coming rum still drinking

    1. Anonymous
      November 8, 2016 at 10:58 am Reply

      True

  26. Mary
    November 8, 2016 at 6:45 am Reply

    Humm..every country in the world is paying tax or vat I’m a lucian leaving in Canada I pay tax in the ppl country wtf you lucian don’t want to pay in in ur country to boast the economy. He reduce it dare he’s putting elsewhere to cover for it

  27. Anonymous
    November 8, 2016 at 7:03 am Reply

    We have a dek dek gor gor for a prime minister

  28. Anonymous
    November 8, 2016 at 7:25 am Reply

    Stop the negative thinking and have faith. Let us pray and believe a change gonna come for the Island and the people of St.Lucia. Thank you mr. Prime minister. You have the power to make St.Lucia better so please help the beautiful people of St.Lucia because they are the ones that put you where you are right now in that position.
    Thank you .

  29. Stop playing politics
    November 8, 2016 at 7:45 am Reply

    Party hacks will always have a problem with anything the present government implement. It a huge break and they still complain. When you add up all the reductions so far it will pu more money in our pockets. Think about it only those who travel will pay, how often do you travel? But with 15% vat you pay it every second of the day. Seat and analysis before you criticise and play politics

  30. Anonymous
    November 8, 2016 at 7:45 am Reply

    Mr. Prime minister, thanks for trying to help out with the vat situation. Food , groceries are very expensive in St.Lucia , hardly for a school child to eat a healthy meal every day ,transportation five days a week and it is very hard , can you do something about that . St.Lucia is a great Island with great people and I am proud to be a St.Lucian. We help you now is your turn to help us 🙏🏾✌🏾️

  31. Stop playing politics
    November 8, 2016 at 7:47 am Reply

    Party hacks will always have a problem with anything the present government implement. It a huge break and they still complain. When you add up all the reductions so far it will pu more money in our pockets. Think about it only those who travel will pay, how often do you travel? But with 15% vat you pay it every second of the day. Seat and analysis before you criticise and play politics

  32. Pm thinks all are we stupid
    November 8, 2016 at 8:08 am Reply

    Chasenet thinks he is doing any body any good when you move 2.5% vat what is the (Word removed) difference and you gonna implement departure tax when the UWP government critizise the SLP government for doing it choops you white and I am black but I am not stupid saint Lucian’s too gullible they playing thy educate but they are idiots…..ti prewn tou is shredding the country.

  33. Nono
    November 8, 2016 at 8:22 am Reply

    How hilarious. So the entire island will NOT do mayor shopping for the next 3 months, since it will be cheaper than. It is insane that a Prime Minister is unable to look how other countries do those things.

    The announcment should have been: starting in 1 week!

  34. k
    November 8, 2016 at 9:32 am Reply

    Thank pm

  35. Sue
    November 8, 2016 at 9:46 am Reply

    What we do not understand is that the poor persons who cannot afford to buy a lb pound of sugar on a morning to send their kids to school are the ones reaaly feeling the kick. We talking rubbish about the airport tax, how many times does a poor person travel for the year, we travel because we choose to in most cases, buying food to feed yourself and family is not an option, it is an OBLIGATION.

  36. politics suck!
    November 8, 2016 at 10:08 am Reply

    what is truly amazing to me is how persons think that the reduction of one tax would not result in the increase or addition of others. there is no way income to the govt will be decreased without a corresponding increase somewhere else.

    this is more than just parties and prime ministers, at the end of the day its you and i that have to face the music as to how we feed and clothe of our families. taxes will affect everyone differently and at the end of the day its who suffers the most and most times they have no voice.

    right now vat is at 15% and no vat on electricity, so the little old man who can now afford to pay 30 dollars in electricity for the month and 50 dollars in groceries may not benefit from all this at the end of the day.

  37. Vote trump
    November 8, 2016 at 10:32 am Reply

    Keep working great job pm

  38. francine
    November 8, 2016 at 10:41 am Reply

    That pm lacks confidence. Comes across as a lack of confidence empty head. Even in his 8 minute speech his hands were trembling. Dek Dek

  39. Anonymous
    November 8, 2016 at 12:41 pm Reply

    World gone mad. Prime minister Chastanet, Today President Trump. Mwen pe’

  40. Eagles Eye
    November 8, 2016 at 1:17 pm Reply

    Sorry to say that St. Lucians are so damn stupid. You should not have lowered the VAT. Perhaps if U had increased it they would have been more thankful. They like to be under the yolk of bondage. Anyway MR. PM, some cannot stomach the fact that you are delivering your election promises in such a short time. The more they speak ill of U the more you will be blessed.

  41. bambi
    November 8, 2016 at 1:21 pm Reply

    I hope the vat exempted and zero item vat will not be interfered with to balance the loss.This will mean people like me will pay more.So Mr.Prime minister please dont remove zero and vat exempted.

  42. Anonymous
    November 8, 2016 at 1:54 pm Reply

    I am not very happy with this although I don’t live there . From 15 percent to 12.5 it’s almost the same to me . I think you can do better than that if you want to keep winning another election.

  43. Agnes Providence
    November 8, 2016 at 4:00 pm Reply

    When you all get somebody good who is willing to lead the country foward you should be very glad and accept him.. was once living in St Lucia and this present PM means well..ove him people he one of you all..KA was from SVG.

  44. Anonymous
    November 8, 2016 at 5:33 pm Reply

    Thank you my PM

  45. DD
    November 8, 2016 at 7:57 pm Reply

    My disappointment with our PM is that he did not paint the entire picture. We should be given the entire package. We should be told how he will get back the 52 million which the country so desperately needs. I can’t celebrate! I just can’t! Its like the good news first then the bad news follows. I hope we and Trinidad are not on the same boat. The Trinis balling like mad! This is too much

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