The car industry in St. Lucia has gone through ups and downs over the years. On several occasions, the government has had to intervene to ensure that the revenue derived from the excise duties levied on vehicles imported into the country, remain consistent with budgetary forecasting. On March 1st, 2001, the Environment Protection Levy Act, affectionately dubbed, the Environmental Levy, came into effect under a Dr. Kenny D. Anthony-led St. Lucia Labour Party Administration. The levy was purportedly enacted to protect St. Lucians and the planet from the threat of air, water and soil pollution, as well as to the global climate crisis.
The imposition of the Environmental Levy quickly created a storm of protest. The levy ranged from one thousand dollars for new imported vehicles, and up to an outrageous twelve thousand dollars for vehicles exceeding four years old. Those skeptical about the governments motive for the imposition of the levy, were firmly convinced that the real reason for the levy was to bring an end to the illegal yet prevalent practice of under invoicing which was costing the government’s coffers millions of dollars in lost revenue and to manacle the rapid growth of the burgeoning used car market which had become a serious competitor to the new car dealerships. This decision was a wise one as it created a more level playing field in the new/used car industry and resuscitated a near-death, new car market.
Despite the travails of the industry in St. Lucia, it continues to arouse and maintain the interest of entrepreneurs who foresee the growth potential of the industry. The raison d’etre for their confidence is that, the “Lucian Dream” – the ideal that everyone should own a vehicle, is more alive than ever before. This ideal is coveted by a vast majority of the population particularly those who belong to the younger demographic profile. The pursuit of the fulfillment of ‘the dream’, impels thousands to lock themselves into high-interest, long-term loans from the local banks and credit unions to own readily available used, reconditioned automobiles from accommodating brokers in Japan. St. Lucians would be more financially secure if the lending institutions would implement loan conditions that encourage young people to invest in a home before an automobile and if the government would craft policies to facilitate and incentivize the same.
Some six months ago, a survey was conducted to determine the number of vehicles imported to St. Lucia. The survey revealed that in a six-month period, 4,000 used vehicles plus 1,300 new vehicles entered the country, approximately one vehicle to every thirty-four people.
It is now our understanding that in the last six months, a different source or supplier of automobiles have emerged. New vehicles made in Thailand have reached our shores. The Japanese vehicles manufactured in Thailand and sold in St. Lucia are between fifteen to twenty percent less expensive and are adorned with more standard ‘bells and whistles’, features which are generally unavailable on the established market.
On another note, the government of St. Lucia is raking in tens of millions of dollars on vehicles from road tax, excise tax, value-added tax, fuel tax and now, the recently introduced Health and Security Levy. While the government is busy unwisely spending our tax windfall, the road network is in a deplorable condition. It is probably in the worst condition it has ever been in the modern history of this country. The inordinate amount of time lost to long, irksome traffic jams, detours, and vehicle repairs as a result of the appalling state of the roads, comes at a huge cost to our peace of mind, financial well-being and physical comfort and most critically, the national economy.