04
9 June 2018
www.govt.lc
Immediate Remedies for Saint Lucia
T
he Government of Saint Lucia implemented the following measures to ease the burdens on the taxpayers of Saint Lucia as follows: VAT Reduction from 15% to $12.5% Introduced at a relative high for the Eastern Caribbean (15 percent), promises of reducing the Value Added Tax were part of campaign promises made by the United Workers Party Government. As early as the first budget upon being elected, the UWP administration sought to reduce VAT from 15 % to 12.5 %. The move was made according to Prime Minister Allen Chastanet with full confidence in the people and businesses of Saint Lucia to create economic activity required to get things back on track quickly – something Chastanet says has thus far exceeded expectations.
Amnesty on Outstanding Hospital Bills As related by the island’s prime minister, an amnesty targeting unpaid hospital bills in particular was absolutely necessary to help solve health care problems in the medium and long term. An amnesty proposed in 2016 targeted pensioners who earned less than $1000 per month, dialysis patients and citizens on the poverty list who were all eligible to receive financial assistance for healthcare. This move came ahead of plans by the government to utilize the resources of a National Health Insurance Fund to finance health care.
Increased Funding for School Feeding and Transportation Program Threatening protest action in 2015 if school subsidies were not increased, the school feeding and transportation programs were top priority once the UWP administration came into office in 2016. Starting off by expanding the program to more schools on the island and later, doubling the subsidy for the school feeding program as well as bus subsidies, plans are underway to mobilize resources to further extend the scope of both programs in the near future.
Reduction in vehicle license fees Two bills presented to Parliament in 2006 addressed the reduction in vehicle license fees, and the amnesty period for unpaid medical bills. The vehicle licensing bill in particular, addressed the proposed 50 percent reduction in vehicle license fees. The bill which was passed in Parliament saw the realization of license fees for all classes of vehicles on the island.
Amnesty on Personal Property Tax Taxpayers benefited from a two-year amnesty for all tax categories administered by the Inland Revenue Department as part of far reaching efforts by the government of Saint Lucia. Between October 1, 2016 and February 28, 2018, taxpayers with arrears were encouraged to contact the Inland Revenue Department to take advantage of the amnesty which was applicable to all arrears up to income year 2014 for property tax and arrears up to income year 2015 for other tax types. Further, the government of Saint Lucia passed an amendment to allow residential property owners to benefit from a three-year exemption on Land and House Tax for the years 2017, 2018 and 2019.
