“Price gouging” is a practice where stores and businesses inflate the price of goods. Prime Minister, Honourable Philip J. Pierre says he hopes this is not the case and encourages private sector businesses to cooperate with the government.
“I really hope that the private sector works with us so that everybody can benefit. They will sell more, and the people of Saint Lucia will be able to improve the quality of their housing”, the Prime Minister told reporters ahead of a sitting of Parliament on August 8th, 2023.
Commerce Minister Honourable Emma Hippolyte says no evidence of price gouging is presently available. However, she says, the Ministry continues to monitor prices island-wide.
“I cannot say today that we have evidence of price gouging, but I can tell you there is a committee in the Ministry of Commerce. The consumer control unit would have had persons out there monitoring and we have received a commitment from the business community that they are going to cooperate with the government.”, she told reporters. However, she has issued a stern warning to private sector businesses, reminding them that the government has the power to hand out penalties.
“But I also want to put the business on guard, that if they do not cooperate with the government of Saint Lucia, we have options. So, I’m hoping now that they keep their word.”
The Prime Minister also clarified that the 2.5% Levy will not be charged on “old stock”. According to Pierre, the tax is collected after the “reconciliation period”, which is twenty-one days in Saint Lucia.
“The VAT is collected upfront, then after 21 days, if the government is owed VAT, the supplier pays it. When the 21 days are over, the [monies] will be collected. So, there’s no such thing as old stock or new stock when collecting the taxes.”, he explained.
Additionally, according to Hon. Hippolyte, a hotline will be made available for consumers to call, should they suspect price gouging is taking place at a particular stock.
“I also want to tell the public that we need to open our eyes. Within the Ministry of Commerce, we are going to give you a hotline to call. We want consumers to assist us in monitoring what is happening.”
The 2.5% Health and Citizen Security Levy came into effect on August 2nd, 2023, alongside the total VAT exemption of certain building supplies, medicine, food, and other items.
