While speaking about his administration supporting the consultation process being applied to the draft bill relating to the Development and Implementation of a Tax Administration and Procedure Act (TAPA), Prime Minister Philip J Pierre stated unequivocally that the proposed bill was initiated by the former regime.
Due to concerns and queries being expressed by the public , he said, it was imperative to provide accurate information to the citizenry “to dispel any misconceptions”.
The prime minister said that the Draft Bill in circulation was initiated by the United Workers Party (UWP) administration, and instructions were given for preparation of the bill from the then Prime Minister and Minister of Finance.
PM Pierre recalled that in December, 2020 – the Department of Finance acting on instructions from the then government- informed the public that “Cabinet by Conclusion No. 1511 of 2020 considered a Memorandum of Understanding (dated 13 November, 2020), submitted by the Department of Finance and approved the request for creation of the Tax Administrative Procedures Act”.
The draft bill further proposed that it was intended “to harmonise the administrative, collections and penal provisions of the various pieces of legislation that are currently administered by the Inland Revenue Department.”
Said Pierre: “It is clear that the instructions for preparation of the Draft Bill came from the former prime minister and minister of finance.”
He added, “Let me inform the public of Saint Lucia that the Cabinet which I lead has never seen the Draft Bill now in circulation.”
The prime minister stated that consistent with his administration’s approach for “policy, dialogue and open government the draft bill prepared on instruction from the former prime minister is open for public discussion.”
He explained that the government’s policy on tax reveals “we have increased the tax threshold to $25,000, which means that anyone (who) earns $2,000 and less per month pays no income tax.”
Pierre stated that his administration has provided “the most generous Tax Amnesty in the history of Saint Lucia, where all forms of fines, penalties and interests has been canceled on all outstanding Tax Arrears, including VAT.”
Considering the government’s policy with emphasis on tax reform, to better the economic gains of its citizens does the proposed TAPA document merit further scrutiny?
PM said, at the moment the document is under review and discussions. “It is for public discussion and people are raising their queries …what we take umbrage to is that we blame the present government…it is not right,” he contended.
Referring to the opposition’s concerns about people’s houses being sized if someone falters with their income tax payments, Pierre recalled, there was a time in Saint Lucia when someone could not travel without obtaining a tax clearance.
He noted that it was the St Lucia Labour Party (SLP) under the then leadership of Dr. Kenny Anthony “who removed” that piece of legislation from the law books and “we cleaned it up”.
Similarly, he said, the intention with the TAPA document is “to clean it up, which is the right intention ”.