Government Of St. Lucia Implements Tax-Friendly Policies To Boost Economic Growth

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Castries, St. Lucia – The Hon. Philip J. Pierre, Prime Minister of Saint Lucia, has introduced a series of friendly policies designed to foster economic growth and enhance the financial well-being of Saint Lucian citizens and businesses. These policies, which are already in effect, have been crafted with the aim of alleviating financial strain and empowering every Saint Lucian to thrive.

The tax-friendly policies implemented by the Prime Minister Pierre’s administration include:

Removal of withholding tax on Small Contracts: This government has abolished withholding tax on government contracts valued at $10,000 or less, providing a significant boost to local contractors.

Tax Amnesty Extension: Local businesses, property owners, and taxpayers who have incurred fines, penalties, and interest charges on unpaid taxes up to the financial year 2021 now qualify for a 100% waiver of all fines, penalties, and interest until May 2024. Prime Minister Pierre’s decision to waive nearly $780 million in charges will alleviate financial strain and enable our citizens and businesses to retain their hard-earned money.

VAT Exemptions: The government has implemented VAT exemptions on various essential items and services, including sanitary products, select building materials, imported solar PV systems, and medical equipment.

Furthermore, the taxes on hybrid and electric vehicle imports has been significantly reduced from 35% to 5%, promoting environmental consciousness and accessibility.

Extension of Property Tax Amnesty: The Land and House Tax Act has been amended to extend the tax amnesty on residential properties in Saint Lucia. Local residential property owners and Sports Saint Lucia Inc. are now exempt from paying property taxes for the financial year 2023, providing much-needed relief to residential property owners.

– Income Tax Threshold Increase: Prime Minister Pierre’s administration has raised the income tax threshold from $18,000 to $25,500 annually. As a result, Saint Lucians earning less than $25,500 a year will pay $0 income tax, ensuring a fair and equitable taxation system.

“These people- friendly fiscal policies highlight this government’s commitment to strengthening economic resilience and empowering every Saint Lucian to thrive. We will continue to create an enabling environment for businesses to prosper and for citizens to achieve financial security.” Said Hon. Philip J Pierre Prime Minister of Saint Lucia.

These policies demonstrate the government’s unyielding resolve to enhance the welfare of our citizens and encourage a conducive environment for business growth and development. With these policies already in effect, Saint Lucians are expected to save millions of dollars annually from tax exemptions and amnesties.

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