The Executive Director of the St Lucia Employers Federation says members are waiting with baited breath for the imminent VAT reduction. Joseph has nothing but praise for the move, expressing his belief that the reduction of 2.5% will give the private sector some much needed breathing space and give the average St Lucian more purchasing power. According to Alexander it is almost certain that within the next few months businesses will see an uptake in business as a direct result in the VAT reduction.
However the opposition St Lucia Labour Party has argued that the VAT reduction is not the gift that it appears to be. The party says the country’s fiscal position will worsen given the resulting decrease in government’s revenue. They warned that the shortfall in government revenue will likely force the government to impose new taxes. Joseph is not overly concerned about this. He says there are options that the government can pursue which will not be burdensome to the average St Lucian.
THE VAT reduction will take effect on the 1st of February 2017.