A government initiative to zero-rate 70 essential items in Saint Lucian supermarkets is set to take effect this weekend, amid political tensions and accusations of deception from the opposition.
Commerce Minister Emma Hippolyte revisited the measure at a Cabinet press briefing this week, addressing earlier comments made by United Workers Party (UWP) candidate for Babonneau Titus Preville.
“Mr Preville made the statement that the government was trying to mislead the general public when it informed that 70 items were being zero-rated,” Hippolyte stated.
Defending the government’s approach to tackling the rising cost of living, she said the new policy is part of a broader strategy to ease financial pressure on consumers through a mix of VAT exemptions and zero-rated goods.
“We were very clear that there were certain items that are VAT exempt,” Hippolyte said, noting that consultations were held with the Chamber of Commerce and other stakeholders. “In order to control rising prices… we sat down and arrived at a list of items that we wanted to be zero-rated.”
The distinction, she explained, is crucial. The government says zero-rating certain items is more effective than simply making them VAT exempt, because it offers savings not just to consumers but also to businesses. While VAT-exempt items aren’t taxed at the register, businesses still pay VAT on the costs of bringing those items to market – like shipping, packaging, and electricity – and can’t claim back those costs, therefore likely reflecting them in the shelf price of their items. With zero-rated items, businesses can reclaim those VAT costs, reducing their overall expenses. In theory, that gives them more room to lower shelf prices and pass those savings on to the public.
But the UWP has dismissed the move as little more than political theatre.
“Saint Lucia, this is an election gimmick by the Saint Lucia Labour Party,” said former cabinet minister Guy Joseph during a UWP press conference. “When we requested the reduction of prices three years ago… the response of the Prime Minister was that they have no control over prices.”
Joseph argued that the government’s item list is overly specific and misleading. “Some of the 70 items were already VAT exempt,” he said.
Joseph also questioned the government’s sincerity, saying it has failed to address structural contributors to high consumer prices. “When UWP returns to office, we will fix this cost-of-living crisis… by using the proper passthrough mechanism for fuel, by addressing the cost of goods imported into the country, by putting insurance in place for our people.”
He pledged that a future UWP administration would implement healthcare insurance and reduce back-to-school costs for parents. “If UWP was in office, mothers with children in secondary school, the most you would pay is EC$250, and your child would have every book they need.”
Also speaking at the UWP briefing was Stephen Fevrier, the party’s Castries North candidate, who labelled the government’s move a “token gesture” ahead of general elections. “It is not enough to make VAT exempt from a limited basket of goods… token gestures will not ease the hardships being felt by the average Saint Lucian,” Fevrier said.
Awa SLP this was just not good at all .Just before elections you guys trying this no way. Why you trying to full the people. whatttttt
They de’ gaje’ you all SLP… And Titus of all persons would know this he was the PS at commerce whattttt..
Guy, honestly, you are one of the primary cancers within your party. You guys are not going to win the next general election. It is evident that your team either did not perform a postmortem of your last loss, or it was not effectively done because your behavior has not changed.
Sir tell us how you can take us forward into the next ten years with pragmatic policies and plans. What you are doing now ain’t it!
Inflation started in earnest in 2021. Items gone up over 100% in that period. 4 years later SLP trying to give us relief. Fuel prices dropped several times from highs. SLP never gave us relief. Who are these clowns trying to fool? Will those price go right back up if SLP wins elections?
I only hope that the supermarkets comply , as they had a whole month so As from tomorrow we want to see a reduction in the 70 items
Brilliant move to help consumers. Someone needs to monitor to make sure businesses don’t try to jack up prices on these 70 items.
Guy Joseph is all about noise but lacks substance. It’s infuriating just listening to him. Can’t he once in his lifetime make a cogent and convincing argument? Is it too much for him to read and understand the basis of tariffs and trade? How can we give the airwaves to such a dimwit? You may disagree with Titus Preville, but he sounds logical; Guy Joseph is an aberration.
@Drako it is obvious that some of you continued to be fooled by the policies of this government. They made us believe that inflation was imported and that there was nothing that they can do about the prices but all of a sudden on the eve of a general election they have all the answers.We must stop allowing these people to take us for granted and them vote them out.
This is fourth night and people just got paid, does the UWPEES think the people care whether or not the reduction of VAT on certain basic essential goods is a political ploy ??? Really ?? No, no, no, Gasa leave that don’t buy it Labor just reduce the VAT because election is coming . I have news for them the people don’t carrrrrrrrrre…….. only the politicians on the loosing end with not rabbits to pull out of their hats cares.
And I quote from the Minister, Hon Emma Hipployte. “In theory, that gives them more room to lower shelf prices and pass those savings on to the public.” Is says in theory. When vat was exempt in sanitary napkins did the price go down. I believe the companies will just end up with bigger profit margins. Let us not be color blind but think for ourselves.
The leading supermarket in island has already increased the prices. I saw that coming . The government need to stop that monopoly and there should be penalties for the leading supermarket on the island …