Saint Lucia to remove 12.5% VAT on 70 food items from July 1 to ease cost of living

Saint Lucia: Prime Minister Philip J. Pierre has announced a major fiscal move aimed at reducing the cost of living for Saint Lucians. During a statement to the media on Tuesday morning, he revealed that the government will remove the 12.5% Value Added Tax (VAT) from a wide range of food items, a move that is expected to lead to immediate price reductions at supermarkets across the island.

According to the information, the VAT will be removed from up to 70 everyday food items. PM Pierre said that this move is aimed at reducing the cost of living, combat inflation and ease financial pressure on the households of Saint Lucia.

The initiative targets 70 essential food items, many of which were previously either VAT exempted or subject to stand at VAT rates. Of these 45 items previously carried the 12.5% Vat while 25 were exempted now all 70 items will be 0 rated meaning they will not be exempted from the 12.5 % VAT.

The initiative that is said to take effect on 1 July 2025 with a reduction on several categories of commerce mainly food. Reportedly, the goods which will come under this initiative includes turkey parts, salted butter, cheese, and vegetables such as garlic, onions, tomatoes, cucumber, okra, carrots and on staples  kidney beans, split beans, black eyed peas and others. 

The prime minister says that the prices on these items are set to go down automatically as the government will no longer be collecting the 12.5% VAT on these particular items, meaning that they will not be taxed at the point of sale.

The Prime Minister acknowledged that while they cannot control the original prices of imported goods, they can control the taxes placed on them once they are in the country. He added that to ensure VAT savings are passed on to consumers, mechanisms will be put in place to monitor supermarkets and vendors. A cut-off date for the new prices is expected to be announced soon.

PM Pierre appreciates Minister Emma Hippolyte 

PM Pierre further extended his appreciation and thanks to the Chamber of Commerce as well as the Minister of commerce Emma Hippolyte and the people in commerce for their work aimed at reducing the cost of living for the consumers of Saint Lucia. The Prime Minister said that he looks forward to the immediate change in prices on the goods as the Chamber of Commerce will be keeping the citizens of Saint Lucia informed.