Preparations are underway for Saint Lucia’s promised VAT-free shopping day, with government sources confirming that Prime Minister Philip J. Pierre has asked the attorney general to advise on the legal steps required for implementation.
The measure, expected before Christmas Day, will be accompanied by a published list of eligible goods to be zero-rated, while some non-essential items may be excluded.
Pierre, who secured a second consecutive term in the December 1 general election, had reiterated his commitment to the VAT-free day on the night of his victory, telling supporters that Cabinet would move quickly to “get the VAT-free day going”.
He also assured public servants that back pay would be delivered as promised.
The initiative was first announced during a November 5 public meeting, when Pierre described the concession as a tangible gift to the nation, alongside Christmas bonuses for public servants and an additional EC$600 payout to more than 3,000 government pensioners.
Members of the opposition United Workers Party (UWP) questioned the feasibility of the measure, noting that parliament was prorogued before the election and that an amendment to the VAT Act would be required. Pierre, however, insisted the day would be implemented “in full compliance with the law” and designed to provide relief by reducing costs for citizens.
Saint Lucia’s current VAT rate stands at 12.5%, reduced from the original 15% introduced in 2012. Upon assuming office in 2021, Pierre’s administration added a 2.5% health and security levy.
VAT-free days, already practised in other Caribbean territories, are typically intended to encourage consumer spending and boost confidence in government.
St Lucia Times
