The Saint Lucian Parliament has officially enacted sweeping tax relief measures, temporarily eliminating financial penalties for overdue Value Added Tax (VAT) payments. The legislative action, spearheaded by Prime Minister and Finance Minister Philip J Pierre, received formal approval during Tuesday’s House of Assembly session.
The approved measures implement a complete suspension of the standard 10% penalty rate on outstanding VAT debts accrued prior to December 31, 2023. This penalty waiver took effect on May 1, 2024, and will remain active until May 2, 2026, creating a two-year window for businesses and individual taxpayers to regularize their tax obligations without incurring additional financial penalties.
In parallel, legislators validated the elimination of monthly interest charges on these historical VAT debts. The previous 1.25% monthly interest fee has been reduced to zero percent for the same settlement period, effectively freezing the growth of outstanding tax liabilities.
Despite these significant concessions, Prime Minister Pierre reported a ‘mixed’ public response to the tax amnesty program, contrasting with government expectations of more enthusiastic adoption. Pierre attributed the subdued reception to insufficient promotional efforts surrounding the initiative.
The finance minister revealed that the amnesty has already yielded approximately $30 million in recovered revenues, though he characterized this amount as merely ‘a drop in the bucket’ compared to outstanding tax obligations. Pierre emphasized the program’s national benefits and appealed for greater cooperation from the business community, framing the policy as a constructive opportunity for financial regularization that ultimately strengthens the country’s economic foundation.