This decision follows a report conducted by the Consumer Affairs Department on a price markup of sanitary napkins at supermarkets across the island. The Office of the Prime Minister issued the declaration on Thursday, October 5th, 2023.
The release reads “Cabinet, at its meeting of September 25, 2023 considered a memorandum dated September 25, 2023 submitted by the Ministry of Commerce, Manufacturing, Business Development, Co-operatives and Consumer Affairs, and approved the request for an amendment to Cabinet Conclusion No. 585 of August 7, 2023 to reflect the following:
- That the HS code of 9619.00.11 for women's sanitary napkins be price-controlled under Section A of the Schedule to the Distribution and Price of Goods Act, Cap. 13.09 of the Revised Laws of Saint Lucia;
- A maximum wholesale mark-up of 30 percent and a maximum retail mark-up of 35 percent for women's sanitary napkins; and
- That the amendment takes effect from Oct. 23, 2023 and ends on Aug. 1, 2025 to coincide with the end of the Zero-Rated Value Added Tax Policy.”
On September 12th, 2023 Commerce Minister Hon. Emma Hippolyte revealed the results of the Department’s report.“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%.”
This decision is part of the government’s effort to end period poverty in women and girls.