According to the Commer Minister, some businesses have not applied the tax removal to their prices. In some instances, she notes, businesses have increased the prices of sanitary napkins by a considerable amount. Immediate efforts by the Department, she notes, are underway to ensure compliance with the government’s policies.

“[The reduction] didn’t go as smoothly as planned. We noted some resistance and noncompliance on the part of several VAT-related businesses,” Hippolyte revealed on September 12, 2023.

The Commerce Minister also disclosed that businesses have not updated their prices to reflect the reduction in VAT. “We have noted with some disappointment non-compliance in certain instances. Only 25% of businesses are in compliance [with the VAT removal], meaning they have reduced the prices to reflect the VAT reduction. In other cases, the full 12.5% has not been realised. It is worth noting that even among the complying businesses, the full 12.5% reduction has not been passed on to the consumer. Mark-ups on sanitary products range from a whopping 90% to 155%.”

Since the implementation of the reduction on August 2nd, 2023, citizens have voiced their confusion with increased prices in supermarkets. Hippolyte says business owners have claimed they were not aware of the change of prices. “Business owners claim not to have known about this tax revision, notwithstanding that the Inland Revenue Department confirmed that all VAT-registered businesses were contacted several weeks in advance of this implementation.”

The Commerce Minister says once the Government changes the rate of VAT, businesses are to reflect the change immediately. “I want to state categorically that once the Government of Saint Lucia has implemented a revised tax measure, it is to be applied immediately - there ought to be no delays.”

 As a result of the confusion, she adds, the government is considering adding sanitary napkins to the list of controlled goods. The removal of the tax is in the government’s bid to end period poverty. Dialogue between the Government and the Chamber continues to facilitate the widespread and full removal of the 12.5% VAT on sanitary items. Consumers are asked to remain vigilant and to monitor prices. Reports can be made to 468-4293/4226.