Loans and VAT on Saint Lucia Parliament sitting agenda

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Loans and VAT on Saint Lucia Parliament sitting agenda

(PRESS RELEASE) — A Sitting of the House of Assembly is scheduled for Tuesday, June 02nd, 2020 with Papers to be laid by the Honourable Prime Minister and Minister for Finance, Economic Growth, Job Creation, External Affairs and the Public Service and the Honourable Minister for Tourism, Information and Broadcasting, Culture and Creative Industries.

The following Motions are down for consideration:-

1. BE IT RESOLVED that Parliament authorizes the Minister of finance to borrow an amount not exceeding the equivalent of US$7,945,000.00 from the Caribbean Development Bank’s Ordinary Capital Resources (OCR) to finance the Millennium Highway and West Cost Reconstruction Project;

BE IT FURTHER RESOLVED that —
(a) the interest is payable at a rate of four point eight per cent (4.8%) per annum on the amount of the loan withdrawn and outstanding;

(b) the commitment charge is payable at a rate of one per cent (1%) per annum on the amount of the OCR portion unwithdrawn;

(c) the loan is repayable in forty-eight equal or approximately equal and consecutive quarterly instalments on each 1st day of January, 1st day of April and 1st day of October of each year, commencing on the first due date immediately following the expiration of five years after the date of the loan agreement or on a later due date that the Caribbean Development Bank specifies in writing.

2. BE IT FURTHER RESOLVED that Parliament by affirmative resolution approves the draft Value Added Tax (Rate of Tax — Goods and services provided by hotels and other providers in the tourism sector) Order to vary the rate of tax for goods and services provided by hotels and other providers in the tourism sector and the draft Value Added Tax (Amendment of Schedule 2) Order to amend Schedule 2 of the Act —

(a) to set the rate of tax for goods and services provided by hotels and other providers in the tourism sector as follows –
(i) the rate of seven per cent tax applies with regard to a supply of —
(A) an accommodation service;
(B) a water sport service;
(C) a tour conducted by land, air or sea within Saint Lucia that does not include transportation provided by an external provider;

(ii) the rate of ten per cent tax applies with regard to a supply of —
(A) food and beverages, including alcoholic beverages, by a restaurant;
(B) an admission service to heritage sites and other touristic attractions;
(b) in Schedule 2 —
(i) under item 1 —
(A) by deleting the definition of “commercial rental establishment”;
(B) by deleting the definition of “dwelling”, and by substituting a new definition that outlines the places that are not considered a dwelling;
(ii) under item 2, by deleting paragraph (m) and by substituting a new paragraph (m) to specify the type of accommodation service that is exempted.

3. BE IT RESOLVED that Parliament authorizes the Minister of Finance to guarantee a loan in the amount of US$4,100,000.00 from the International Development Association for the purpose of financing the Caribbean Regional Communications Infrastructure Program;
BE IT FURTHER RESOLVED that —
(a) the Maximum Commitment Charge Rate payable on the Unwithdrawn Financing Balance is one-half of one per cent (1/2 of 1%) per annum;
(b) a service charge is payable on the Withdrawn Credit Balance that is equal to the greater of —
(i) the sum of three-fourths of one per cent (3/4 of 1%) per annum plus the Basis Adjustment to the Service Charge;
(ii) three-fourths of one per cent (3/4 of 1%) per annum;
(c) the loan is repayable in twenty years from the date of first disbursement of the loan;
(d) the principal amount of the loan is repayable on each 15th day of February and 15th day of August of each year at a rate of —
(i) one per cent (1%), commencing on the 15th day of August, 2030 to, and including the 15th day of February, 2040 (ii) two percent (2%), commencing on the 15th day of August, 2040 to, and including the 15th day of February, 2060.

4. BE IT RESOLVED that Parliament authorizes the Minister for Finance to guarantee a loan in the amount of US$20,000,000.00 from the International Development Association for the purpose of financing the Human Capital Resilience Project;
BE IT FURTHER RESOLVED that —
(a) the Maximum Commitment Charge Rate payable on the Unwithdrawn Financing Balance is one-half of one per cent (1/2 of 1%) per annum;
(b) a service charge is payable on the Withdrawn Credit Balance that is equal to the greater of —
(i) the sum of three-fourths of one per cent (3/4 of 1%) per annum plus the Basis Adjustment to the Service Charge;
(ii) three-fourths of one per cent (3/4 of 1%) per annum;
(c) the loan is repayable in forty years from the date of first disbursement of the loan inclusive of a ten-year grace period;
(d) the principal amount of the loan is repayable on each 15th day of May and 15th day of November of each year at a rate of —
(i) one per cent (1%), commencing on the 15th day of May, 2030 to, and including the 15th day of November, 2039
(ii) two per cent (2%), commencing on the 15th day of May, 2040 to, and including the 15th day of November, 2059.

5. BE IT RESOLVED that Parliament by affirmative resolution approves the draft Value Added Tax (Amendment of Schedule 3) Order which amends Schedule 3 of the Act to exempt imports of personal items, food, clothing, toys and other household consumables, contained in barrels.
The Bills for consideration are:
1. Saint Lucia Tourism Authority (Amendment)
2. Tourism Levy
3. Labour (Amendment)

Tuesday’s Sitting is scheduled to commence at 10:00 a.m. The Sitting of the Senate is scheduled for Thursday, June 04th, 2020 at 10:00 a.m.

In keeping with the protocols established by the authorities for management of the Coronavirus virus (COVID-19) crisis and with a view to ensuring that there are established protocols, members of the public will NOT be allowed in the Chamber Gallery during the Sittings. Kindly note that the public can view the live proceedings on National Television Network (NTN) Channel 122, Government of Saint Lucia Facebook and YouTube.

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