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Having made the initial announcement in the Budget Address of 2007, the Government of Saint Lucia has committed itself to the implementation of a value added tax system.

Prime Minister Stephenson King, in a 2009 New Year’s address, indicated that the new tax will not be introduced before April 2010. In the interim, an implementation team has been setup, under the purview of the Ministry of Finance, to do all the preparatory work necessary for the introduction of a VAT.

Coordinator of the Implementation project, Mrs Jeanette Hughes, said the team has begun work on all the major components involved.

"Given the nature of a value added tax system, the parameters to be set, must be suitable for the Saint Lucian environment. We must determine the appropriate rate and ideal threshold for a VAT in Saint Lucia. We are taking great consideration towards ensuring that VAT system will not significantly affect the lives of the vulnerable groups in the society,” she said.

Hughes added that her team is presently carrying out an analysis to enlighten this process. She said that no stone is being left unturned in their investigations.

"Policy decisions must be taken to determine what items should be zero- rated or exempted from vat. It is also very important to arrive at the suitable threshold for Saint Lucia, because it will inform the administrative requirements for maintaining and monitoring an effective system," said Hughes.

The Project coordinator noted that the team is considering options for the organizational structure for the administrations of the VAT. Among which is complete integration into the existing Inland Revenue Department, or a stand-alone unit, as is currently the case in Belize.

Meanwhile, Kurt Reynolds, the team's public relations specialist has promised a full scaled program for the public education and sensitization on the implementation of a VAT.

"We will be covering the length and breadth of Saint Lucia in our extensive community meetings. The VAT team will be a constant staple on local media with a series of talk show appearances, advertisements and interactive newspaper columns. It is guaranteed, be it at stakeholder meetings, presentations to organizations or general information material we have prepared, that all Saint Lucians will be made fully aware of their duties, rights and responsibilities come the 31st of March 2010," said Reynolds.

Reynolds added that a common misperception is the belief that vat is an additional tax.

"In reality, value added tax will replace or reduce the number of indirect taxes that currently exist and are already being paid by consumers. We must remember too, that there are certain taxes with which a VAT cannot coexist, such as consumption tax. We also welcome the public to contact the team at our offices at 4681420 or emailing us at vatcoordinator@gmail.com or vatcoordinator@gosl.gov.lc," said Reynolds.

Contact:

Phone: +758-468-1420