By Dale Carnegie Elliott
As global economic pressures ripple through households, Saint Lucia’s 2025 national budget aims to offer its citizens a financial lifeline. Prime Minister Philip J. Pierre has framed this year’s fiscal plan as a people-centered recovery effort—one rooted in tax relief and middle-class empowerment.
At the core of the budget are sweeping income tax adjustments. The personal income tax deductible allowance has been raised from EC$30,000 to EC$40,000, a move that will increase take-home pay for thousands of workers. Pensioners, too, will benefit—government reforms now exempt all pension income from taxation. “They’ve paid taxes all their lives,” said veteran tax consultant Antonia Alcindor. “Now they’re finally getting a break.”
Families stand to gain the most. The deduction for children under 18 has increased to EC$5,000, while parents supporting children in higher education can now claim up to EC$10,000—double the previous allowance. Meanwhile, credit union savers can access deductions up to EC$10,000, encouraging savings while reducing tax liability.
Perhaps the most consequential move is the extension of the tax amnesty programme through May 2026. It offers a penalty-free path for individuals and businesses to settle arrears without interest or fines, fostering both compliance and renewed engagement with the formal economy.
“Compliances are everything,” Alcindor noted. “To buy or sell property, to get a mortgage—you must be tax compliant. This amnesty gives people a chance to reset.”
Antonia Alcinor, Tax Consultant
Still, some question the timing. Coming months before a likely general election, critics argue the relief measures may be more politically strategic than fiscally sustainable.
Yet for many Saint Lucians burdened by rising costs, these reforms represent hope—tangible steps toward financial breathing room. The challenge now lies not in the policy, but in its execution—and in whether the relief promised reaches those who need it most.