Under this initiative, local businesses, property owners, and taxpayers facing fines, penalties, and interest charges on unpaid taxes to the government (up to the financial year 2021) qualify for a 100% waiver. This amnesty program aims to provide financial relief and encourage compliance among taxpayers by alleviating previous financial burdens.

“This government has made it easier in terms of tax. We’ve given an amnesty on all arrears of Income Tax. Never in the history of this country has there ever been an amnesty on tax interests and penalties. That means that if you collected VAT on behalf of the people of Saint Lucia and you do not pay that VAT back after you’ve collected it, there’s normally a fine or some interest. This government has waived [the penalties] completely. This government is saying to just pay the VAT and that’s it. Never before has that ever happened,” PM Pierre stated.

Prime Minister Pierre has chosen to forgo nearly $780 million in fines, penalties and interest charges on unpaid taxes to the government through this tax amnesty. This decision is expected to alleviate the financial strain on citizens and local businesses and allow them to keep that money.

The Prime Minister has also activated several tax exemption programmes to give everyday Saint Lucians a fighting chance against inflation. Citizens earning XCD 2,000 or less a month are exempt from paying income taxes.

“This government has, in terms of tax thresholds, the highest tax threshold ever - $25,000 in terms of the tax threshold. People who get $2000 or less, do not pay any taxation. Never before has that happened. That is our history on taxation,” he explained.

VAT exemptions also exist on sanitary products, which are price-controlled, select building materials, imported solar PV systems and imported medical equipment. Taxes have also been reduced on hybrid and electric vehicle imports from 35% to 5%.