Saint Lucia cuts Value Added Tax

CMC – St. Lucia Wednesday cut the Value Added Tax (VAT) from 15 to 12.5 per cent with Prime Minister Allen Chastanet saying his administration is keeping a key campaign promise to the electorate.

“We have always believed that taxation should be a product of increased economic activity and not an entitlement of government,’ Chastanet said, as his United Workers Party (UWP) government introduced the campaign pledge made ahead of the June 6 general election last year.
“My administration will continue to undertake a full restructuring of the tax system with the aim of increasing overall national consumption, reducing the cost of living and easing the burden on households and businesses.”

Chastanet said it was necessary to be able to encourage people to invest here “we have to be more competitive” and that taxation should not be used to address economic inequality.

He said the private sector also needs relief.

“To continue trying to use taxes to be able to re-distribute wealth or to protect people who are more vulnerable in our society has not worked anywhere in the world. In fact what it does it skews the taxes and makes them less effective.

“We will be making announcements later this year on the continuation of reviewing personal income tax, corporate tax, the Vat itself with the idea of having a rate which is much more effective, a rate we believe will cause the economy to grow and so while the rate may go down it is anticipated with the growth of the economy that the total amount of money we collecting will remain the same or in fact even grow.”

He said pro-growth measures are also important for the revival of the ailing economy.

14 Comments

  1. the man himself
    February 2, 2017 at 9:32 am

    Nonsense cut that vat thing completely.if u want to lower cost of living,lower tax on businesses and tourist and import duties.and see how much money the country would begin to generate income.

  2. lucia
    February 2, 2017 at 9:58 am

    Sigh,seriously

  3. Anonymous
    February 2, 2017 at 10:03 am

    Shut up chastanet i want to continue paying the 15 percent vat rate u are a white man go back to europe where your ancestors came from u and the boulays

    1. Dre
      February 2, 2017 at 10:35 am

      Really smh

    2. Gabriel Stoke
      February 2, 2017 at 11:00 am

      So presumably you will go back to Africa where your ancestors come from?

      1. 465465465
        February 2, 2017 at 12:31 pm

        LOL. Leave Saint Lucia to the Caribs!

  4. Anonymous
    February 2, 2017 at 10:44 am

    Anonymous, it’s people like you who create problems.. I’m sure you were one who complained when the 15% was introduced and now because you believe the PM is white…He should go….So much for ending racism. I hope when you go buy something, you continue to pay 15%. You are what we call in St. Lucia “Inowan”

  5. Smarteyes
    February 2, 2017 at 11:21 am

    End racism we all came from our heavenly Father through him we all exist he doesn’t care about colour or nation we all his children

  6. Anonymous
    February 2, 2017 at 11:49 am

    Lucia’s don’t know what they won’t.

  7. Anonymous
    February 2, 2017 at 11:53 am

    Y, attack posters on this blog, make your point, go high when they low…our constitution guarantee freedom of speach. While we on cuts and economic growth, government need to review the barrel concession with a view to stopping it. Kennynomics has destroyed the Mom and Paps shops by allowing millions of dollars of groceries etc into the Country. The benefactors of such policy are Costco, BJ’s, Sam’s Club and the many outlets in the US and elsewhere where immigrants shop to send stuff home. What has St. Lucia gotten in return? Thousands of tonnes of cardboard and plastic filling our landfills, over $500 millions dollars of foreign exchange lost over the last 20 years…hundreds of jobs lost in the wholesale/retail industry.. (Barbay, Peter & Co, Bryden & Partners, J E Begasse etc) In addition, the child with a small grocery shop at home miss the opportunity and experience to participate in life lessons of buy & sell, profit & lost, wholesale and retail, debit and credit, banking, interest etc. Some of our most successful Bankers, Economist, Business People started in the family Shop. Tax the groceries at a rate where it becomes more expensive to ship from overseas than buying local. St. Lucians should wire the equivalent monies home to family and let them spend it in the economy, its a win/win…job creation, increase foreign exchange and GDP.

    1. Anonymous
      February 2, 2017 at 1:26 pm

      Seriously??? Perhaps you are not one of the many less fortunate persons who can barely afford the exorbitant cost of everyday staples at the supermarket and can finally get that ONCE A YEAR break when that cardboard/plastic bin comes! We are over laden with taxes in this country – hence the reason for a replacement tax! Road tax, property tax, VAT, a mandatory NIC salary deduction etc etc yet a shitty health care system, no social services for seniors or children, no benefits, barely adequate education sector and the list goes on.. why take away the ONE freebie that can give people a break??? wow.. seems like we want to continue crippling the poor making this place more and more unbearable to survive. Here’s a suggestion – maybe our local retailers can do better at providing the things we need, invest time and effort on service delivery, meeting the needs of their customers at an affordable price so we don’t have to depend on cost co & target… there’s many ways to skin a cat..

    2. Anonymous
      February 2, 2017 at 8:43 pm

      Look like you never get a barell so you don’t know what it feels like.

  8. Anonymous
    February 2, 2017 at 6:38 pm

    we lucians don’t know what we want smh

  9. St. Lucian
    February 2, 2017 at 10:28 pm

    Okay INCH you said on talk show that VAT will never cut. Now take out your red glasses and see for yourself. Hope you enjoy the releif

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