In a bold move to stimulate the economy and empower citizens amid rising global costs, Prime Minister Philip J. Pierre announced that no new taxes will be implemented with the presentation of the 2026/27 Budget.
Under the theme “Consolidating Our Gains: Prospering in Uncertain Times,” the Budget aims to protect ordinary Saint Lucians, support business growth, and maintain a responsible financial trajectory.
A statement from the Office of the Prime Minister (OPM) emphasized that instead of imposing new burdens on families and businesses, the Pierre Administration is relying on careful fiscal management to deliver relief, expand opportunities, and strengthen the economy.
Despite challenges such as rising fuel prices, conflicts, supply chain pressures, and economic uncertainty, Saint Lucia has made significant economic and fiscal strides in the 2025/26 fiscal year.
Government payables have decreased from over EC$160 million in 2022 to approximately EC$20 million by December 2025, the primary balance has improved, and both the overall deficit and current account surplus have narrowed.
“These are not just numbers; they are proof that better management is creating space for better support for the people. The 2026/27 Budget translates these gains into direct assistance for Saint Lucians,” the statement noted. Key people-first measures in the Budget include:
– Government payment for five CSEC subjects
– A one-time payment of $1,000 to expectant mothers
– Expansion of the School Feeding Programme
– A one-time payment of $700 to pensioners
– A one-time payment of $200 to Public Assistance Programme clients
– Progress toward Universal Early Childhood Education
– Increased support for persons with disabilities – Housing support for low-income and vulnerable families – Educational grants, medical support, and small business assistance
The Budget also delivers significant support to the private sector. To ease financial burdens, the Tax Amnesty Programme will be extended, allowing taxpayers and businesses to settle outstanding obligations without incurring heavy interest, penalties, and fines on taxes due up to December 2025.
Moving forward, penalties and interest on overdue taxes will be reduced from 12.5% to 6%.
Businesses will also benefit from:
– Extended deadlines to file corporate tax returns
– Tax rebates for companies providing after-school care support
– Tax credits for donations to Special Education Needs programmes
– Incentives for recycling and environmentally responsible business activities
– Improved digital services to reduce delays
– An electronic single-entry window to facilitate business operations
This practical Budget recognizes the global economic climate and provides relief where it’s needed most: helping parents cope with school expenses, supporting pensioners facing rising food prices, giving small business owners breathing room, and assisting young entrepreneurs with fewer bureaucratic hurdles.
Prime Minister Pierre’s message is clear: Saint Lucia can responsibly manage its finances while prioritizing its people.
The Pierre Administration remains committed to protecting families, supporting businesses, and fostering confidence in the future.
No new taxes. More relief. Better management. A stronger Saint Lucia says Pierre.