The St. Lucia Chamber of Commerce, Industry and Agriculture has welcomed the Government’s recent adjustments to the Value Added Tax (VAT) Act, which reclassify several products as Zero-Rated and reduce the VAT Exempt List.
The Chamber said the changes are a step in the right direction. “This is a long overdue step in the right direction,” the organization said. “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.”
Under the new measures, products moving from the Standard Rate of 12.5% to Zero-Rated could see price reductions of roughly 11.11%, with Chamber members committed to passing these savings directly to consumers. For items moving from VAT Exempt to Zero-Rated, no immediate price change is expected, but the Chamber noted that this will remove hidden cost burdens on businesses, potentially helping to stabilize or lower prices over time.
The Chamber emphasized the broader benefits of the reform. “A fairer VAT system strengthens businesses, supports jobs, and ultimately delivers better value for consumers,” it said. However, it expressed disappointment that pharmaceutical products remain on the VAT Exempt List and pledged to continue advocating for their inclusion in the Zero-Rated category.
The Chamber concluded by reiterating its philosophy: “What is good for the country is good for business – and what is good for business is good for the country.”