VAT and YOU!
In the 2007/08 budget address, the former Prime Minister Sir John Compton announced that Government will be introducing the Value Added Tax in Saint Lucia. I addressed this issue in my New Years address earlier this year, in which I indicated that VAT will not be implemented before April 2010. I wish to take this opportunity to reiterate that VAT will not be implemented before April, 2010. The VAT Implementation Project is fully operational and the Project Team has been working assiduously towards a smooth implementation.
Let me state that VAT will not be an additional tax but rather it will replace a number of existing taxes such as the consumption tax. It will modernize the tax system and make it simpler to administer while reducing the tax burden for some taxpayers. Government also views the introduction of VAT as part of its strategic policy response in strengthening economic management, thereby building the resilience of the economy to vulnerability and external shocks. The need for this strategic approach has become even greater in light of the impact of the global recession.
The team has begun a public education campaign to educate taxpayers and the general public about VAT. They have met and made presentations to key stakeholder groups. The public education campaign will be intensified within the coming months as the team seeks to ensure Saint Lucia is fully prepared for VAT by the implementation date. The draft VAT legislation has been prepared and will be presented for public consultation. Let me take this opportunity to encourage persons to take advantage of the public consultation and education process as the VAT team will be making presentations to various groups and organizations in the coming months.