Gov’t Announces 6.5% Reduction to Offset High Costs of Commodities and VAT Removal on Selected Products
Prime Minister Philip J. Pierre has introduced decisive measures to alleviate the financial burden on consumers regarding essential food commodities and supplies.
This includes a strategic reduction of food imports and the elimination of VAT on specific products.
In response to pressing concerns from citizens, the government has engaged in productive discussions with business leaders across the island.
Over the next two months, from June through July, consumers will see significant reductions in prices for selected goods, contingent on import costs.
“Effective June 1, the service charge on all controlled items will be eliminated, resulting in immediate price reductions for these goods, provided there are no price increases from overseas,” PM Pierre declared at a pre-cabinet meeting on Monday.He strongly emphasised that prices for these items will fall by 6.5%, unless import prices rise. The comprehensive list of Price-Controlled goods includes: baby foods, baby food juices, cement, cereals, corn flakes, corn meal, oats, cheese, cheddar cutter wraps, powdered chocolate cocoa, corned beef, wheat flour, garlic, margarine, mackerel, evaporated milk, edible oil, onions, peas and beans, potatoes, powdered soap (400gms or less is decontrolled), rice packages, salt biscuits, sardines, tuna, toilet soap, toothpaste, and priced-controlled agricultural products.
Moreover, from July 1, VAT will be removed from various product categories. The Prime Minister confirmed that discussions with the Chamber of Commerce are underway, and the 12.5% VAT on numerous foodstuffs will be eliminated.
This will further reduce costs for consumers, assuming international prices remain stable, he said.
PM Pierre praised the “excellent cooperation” between business leaders, the Chamber of Commerce, and the Ministry of Commerce, asserting, “We are taking decisive action to ease the cost of living for consumers in this country.”
The public will be kept fully informed of all developments.
The prime minister confirmed that these measures are “indefinite” and will remain in effect for the duration of this administration.
When asked if the recent measures were politically motivated due to the upcoming general election scheduled for mid-2026, Prime Minister Pierre rejected that idea and highlighted his administration’s track record.
“Examine our history,” he stated. “Look at the initiatives we began implementing in our first year in office and create a checklist. This government makes promises and delivers them. We don’t act for elections… I assure you that these initiatives are focused on the development of the people of Saint Lucia.”
While acknowledging that elections are an unavoidable political reality, Pierre insisted, “These actions are not for electoral purposes; they are for the welfare of the people.” – By Reginald Andrew
“