Whilst serving as Prime Minister, Hon. Allen Chastanet kept his campaign promise and reduced VAT by 2.5% to ease the burden on individuals and households, putting more money in the pockets of Saint Lucians. In contrast, when Philip J. Pierre became Prime Minister, he introduced a new 2.5% Health and Security Levy, which led to higher prices for goods and…
Unlike traditional VAT, which is applied as a percentage of the final sale price of goods or services, the 2.5% tax introduced by Prime Minister Pierre compounds on top of other taxes such as VAT. Tax Scenario #1: Item costs $100.00 with 15% VAT the total cost would be $115.00 Tax Scenario #2: Item costs $100.00 + 12.5% VAT brings…
The implementation of a new 2.5% tax on goods and services effective July 1st, 2023 has the potential to significantly impact the poor and vulnerable, particularly in the midst of an inflation crisis. With the government failing to provide any substantial support for those most in need, the additional burden of this tax will push many people further into poverty.…