In a move aimed at reducing the financial strain on Saint Lucian households, the Government of Saint Lucia has removed a six percent service charge on a wide range of essential goods. The tax exemption, which took effect on June 1, 2025, is expected to ease the impact of rising global food prices on the local population.
The decision is part of a broader package of relief measures and was implemented through Statutory Instrument No. 82 of 2025, which suspends the service charge on all price-controlled items until May 31, 2026.
Speaking on the matter, Minister for Commerce, Hon. Emma Hippolyte, explained that the government is taking deliberate steps to address the rising cost of living.
“This government is committed to doing everything within our power to ease the economic pressure on our people,” she said. “Removing the service charge on items like packaged rice, flour, milk, cooking oil, potatoes, baby food, and canned products is just one of the ways we are responding.”
The Ministry of Commerce, through its Consumer Affairs Department, has been tasked with monitoring the implementation of this policy to ensure that the benefits reach consumers. Retailers and wholesalers dealing in price-controlled goods are required to submit pricing sheets for approval. These prices must fall within established markup ranges—7.5% to 11% at the retail level and 10% to 20% at the wholesale level.
According to the Ministry, initial reports indicate that businesses have been largely compliant, and consumers have begun to benefit from the expected price reductions.
The removal of the service charge comes at a time when inflation continues to affect the cost of basic items across the Caribbean and beyond. The government has stated that it will continue to monitor the situation closely and consider additional measures if necessary.