According to the latest release from government sources, being cognizant of the ‘economic pressures’ brought on by a 6.4% inflation rate, the administration is bent on employing measures to cushion the impact on consumers, generally.
Official sources discern that high inflation causes consumer prices to spike, and when prices go up, consumers tend to buy less.
Consequently, when people buy and consume less, businesses lose out on revenue. As a result, declining revenues discourage growth and hiring in the private sector.
Reports indicate that for nearly six years, from 2017 to 2021, inflation remained below 3%. In 2018, inflation peaked at just 2.6%.
Shortly after the SLP-led Prime Minister Philip J Pierre’s administration attained office in July 2021 it was reported that inflation more than doubled soaring to 6.4% in 2022.
In an effort to address the matter, PM Pierre noted, during his budget delivery that government were set to introduce a tax amnesty on arrears in May 2022. In the process, corporate entities were informed that once outstanding taxes are paid in full by May 1, 2024 a 100% waiver on penalties, fines, and interest will be granted to eligible businesses.
Government urges the private sector to take advantage of the tax amnesty to reduce its debt to the government. Reports state there has been favourable responses to PM Pierre’s tax amnesty format.
Government sources state that eliminating tax arrears has improved the ability of local businesses to meet their obligations to the Government of Saint Lucia.
Notably, the Government of Saint Lucia received $15.8 million in outstanding taxes from the private sector in 2022/23.
A sum of $11.2 million was paid to the government between April and September 2023.
A release from the Office of the Prime Minister stated that, “Prime Minister Pierre leads a Cabinet of Ministers that understands when businesses do well, so does the Saint Lucian economy. The decisions made in the Cabinet deliver timely relief, advance the development of our people and move our nation forward.”