The St. Lucia Chamber of Commerce, Industry and Agriculture welcomes the Government’s decision to reform the VAT Act by reducing the VAT Exempt List and moving several items to the Zero-Rated category.

Firstly, the move from Standard rated to Zero rated brings about immediate relief on products that are staple for and critical to the health and wellbeing of customers.

Secondly, “This isa long overdue step in the right direction,” as the Chamber has always believed and advocated that, “The previous VAT Exempt system unfairly penalized businesses by making VAT an unrecoverable cost. Moving these items to Zero-Rated status stops the bleeding and improves the ability of businesses to invest and compete.”

Impact on Prices

·        Standard-Rated (12.5%) → Zero-Rated: Consumers can expect price reductions of around11.11% on these goods, and Chamber members are committed to passing on these savings in full.

·        VAT Exempt → Zero-Rated: Will have No immediate price drop, but it will remove hidden cost burdens on businesses. Over time, this should help stabilize and potentially lower prices.

The Chamber stressed that thisreform benefits the economy as a whole: “A fairer VAT system strengthens businesses, supports jobs, and ultimately delivers better value for consumers.”

However, the Chamber remains disappointed that pharmaceutical products were left on the VAT Exempt List and will continue to advocate for their inclusion on the Zero-Rated List.

The Chamber reaffirmed its core belief:

“What is good for the country is good for business – and what is good for business is good for the country.”

For more information contact: Mr. Brian Louisy, Executive Director ---ENDS---

‍