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Prime Minister announces VAT reduction

By Horace Cunningham, SNO Staff Writer

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Allen M. Chastanet

Allen M. Chastanet

Prime Minister Allen Chastanet last night announced the VAT reduction which has been eagerly awaited by St. Lucians since it was promised in the elections earlier this year.

The reduction, which will take effect on February 1, 2017, will pump $52.5 million into the hands of St. Lucians according to the PM.

The VAT reduction will see a cut from the current 15% to 12.5%.

Countries in the Caribbean have been taking steps to provide stimulus in the hope of triggering growth, a direct shift from the austerity policies adopted since the collapse of the US financial markets that had deeply impacted Caribbean markets.

(25)(6)
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44 comments

  1. If you are an unsophisticated buffoon as are some of the pseudo intellectuals in the SLP, please don't blame those of us who understand that the lessening of taxes can create greater taxable economic and revenue-generating activity. This is the expectation. Hence, there can be an employment benefit and a taxation collection upside when taxes are reduced.

    (4)(6)
  2. Some governments would not put their own stamp on fiscal policy, especially regarding HIGH taxation levels instituted by previous incumbents. That this administration has seen it fit to tweak the existing system is a great credit of the leadership. There is still a gap in expectations.

    There is no parity or equity. The hospitality sector enjoys a more favored position. It only carries an 8% VAT.

    (5)(2)
  3. some st.Lucian a fools.. THE PM HAS REDUCE TAX AND THEY STILL NOT HAPPY.. Ask me what Kenny dan for this country...nothing but problemz

    (10)(13)
  4. So the announcement! VAT will be reduced by 2.5%. Now waiting on the another announcement how will the government get back the revenue which they have lost? Did not hear The PM's rebuttal but i hope the zero rated goods etc will remain that way or else we have been deceived by "creative ways". Still have to wait till Feb next year to hear more info then for the gov't to put measures in place still a longer process. My eyes are being opened sad to say it's too late

    (2)(3)
  5. Chastanetronics has finally began! The only thing left is to see it work for the common good.

    (0)(0)
  6. There are days in beautiful St.Lucia that i sit there and can't seem to perform the simplest of equations. I mean really simple stuff, like 2-2, etc. I'm educated in the streets, suites and have been brainwashed by two universities along the way to obtaining Masters degrees. However, with all this knowledge still i sat there baffled.

    So VAT was 15%. St.Lucians made their voices heard over how high these tax was, etc. Great! The new government runs on the premise that St.Lucians are over burdened and taxed. Still great. Fast forward a few months, they've won and new taxes have been implemented; VAT is barely reduced by 2.5% The sum of these new taxes and the reduction of VAT still has St.Luicans paying more in taxes than when they started off. Yet St.Lucians are here rejoicing, still happy, somehow optimistic.

    Someone help, as i'm lost. Some of these comments. wow.

    (2)(0)
  7. Mr.Prime Minister it is a good move but i hope you will interfere with any of the exempt items or the zero vat items. If you do it will be useless because you will collect the same revenue to balance the reduction you gave.So i hope we are not going in that direction giving the SLP the edge in their prediction.Good luck.

    (1)(0)
  8. I'm happy to see that the first step has been taken towards the removal of vat Before elections Mr. Chastanet personally explained to a group of us that his administration would revise vat and try to get it reduced then they would revise it again to try to get it completely removed. I'm glad to see that this announcement came within 5 months

    (19)(21)
  9. THAT WAS THE BEST SPEECH EVER. I ASK MY SON TO RIP OFF THIS PAGE IN ST LUCIAN HISTORY, AND DO HIS OWN SPEECH.
    THANKS MR CHAS

    (10)(22)
  10. This reduction is certainly way beyond expectations. It is certainly not what people demonstrated for. I was longing for it's total eradication.

    (10)(25)
  11. This was not live ....be true to the ppl mr pm

    (8)(9)
  12. This will not change anything the owners of supermarkets and other stores will not bring down the price of items. they will be happy to make more profit

    (20)(6)
  13. Obviously you cannot cut taxes too close to a budget that was not conceived and passed by you. Right now the economy is on remote control since the authors of the budget are not in power, This emphasizes the need for us to have a fixed date for elections. Even Donald Trump was allowed to sit at National Security meetings by just being the endorsed candidate in the national elections. This is a progressive strategy aimed at informing a future leader about the state of the nation in the even that he assumes office.

    The pea-brained leaders of this parts live on rocks yet they want to be emperors of it, even though science informs us that we are losing many feet of rocks due to rising sea levels. I hope that Constitutional Reform is high on Allen Chastanet's agenda. It is time that we come to terms with our problems and avoid the stupid notion that prime Ministers and government officials know it all. It is time that we have a participatory democracy and not be intimidated and influenced by the ideologies of our toothless grandparents and soon to be toothless parents who patronized and became political party fanatics.

    Ask not what your party can do for you but what can you do for your children.

    To the young and able-bodied among us: There is a possibility that we may lose in fighting back, however, not fighting back surely guarantees us a lost.

    (23)(5)
    • .. Very well stated! I applaud you!

      (4)(1)
    • "Wam there" exceptionally well written piece.

      To my young St Lucians don't follow your parents and gran parents mentality with regards to politics and Red and Yellow...

      It should be for the betterment of all St Lucians. Not because you voted for a certain colour and that colour wins that means they can't do no wrong in your eyes.

      Our politicians reply and prey on that mentality and have been for decades.

      I remember watching or listening to a clip of Faux Pa Francis (Hermangil) on a political platform stating the reason for him joining the political race is to keep Kenny Anthony out office and applause he receiv ed.

      Now am no fan of KDA or Labour but how can someone want to run for political office and give the above reason for doing so.

      What about wanting better for the people of St Lucia and or your constituents, wanting to improve Health Care, better Education, reducing unemployment, eradicating homelessness wanting to make sure our homeless people can go some where to get at least one healthy meal for the day and list can go on and on.

      No he just wants to run for office to keep KDA out of office (no pun intended)

      Did you notice when Yellow came into power knowing things are ruff for the common Lucian an HONOURABLE act which could have taken place was for elected MPs to take a wage cut for the term they're in office...

      Demonstrate to Lucians this is a party for the people and not their pockets...

      (4)(2)
  14. who wrote this piece!!!

    "....the reduction....then will pump $52.5 million into the hands of St. Lucians according to the PM."

    That sentence is so wrong, what you should have stated was the difference in revenues which will be collected.

    ie the REDUCTION in revenue when we move from 15 to 12.5%

    (5)(4)
    • That is actually what the PM said "pumped back into the hands of St. Lucians"

      (6)(0)
      • And how exactly is this going to work, what about all the VAT items that are zero rated and will removed from the list

        (1)(1)
    • There is precedence in this concept working. Do a search for voodoo economics or supply side economics. Now before you morons think it is real voodoo, it was an economic policy utilised by Ronald Reagan that defied convention yet brought economic growth.

      (2)(2)
    • Who pays the VAT? The consumers. Isn't it. What happens if that 2.5% reduction is not paid by the consumers to govt? It remains in our pockets. We are able to spend extra in the supermarket and other private business because of that. The Supermarket and other private sector employs more people because of that. Isn't that pumping money in the economy?

      (11)(12)
      • You making the assumption that everything will be reduced by 2.5%. There's no regulation for the big companies monopolising the market, there's no competition. Soon you will have a situation like the US, too big to fail and then what.. the government has to give in to demands like the case of Sandals a few years ago, threatening to take the people of St. Lucia hostage.

        (0)(0)
      • You just confused a ton of St. Lucians with that.

        (0)(0)
      • I agree. It is not so much the exact words that should be examined but the concept and the context in which it is said. We should avoid playing politician ourselves and assume the role of evaluators and look to the true meaning of words instead of their literal value. I am sure we all very well know what he meant. Bottom line is we don't trust so much of our monies going in the hands of government who has never done a good job of either creating wealth or managing the funds to our benefit.

        (1)(0)
  15. Is that a typo February 2016 - or is everything being backdated and we get a refund?

    (5)(1)

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