By all accounts, Saint Lucia’s first VAT-Free Day on Monday (December 22, 2025) turned out to be exactly what was promised: a day everyone could bank on and plan for not having to pay Government taxes on hundreds of normally-taxable items.
It didn’t just happen overnight, as Prime Minister Philip J. Pierre first promised this tax-free day way back in September (three months ago) when there was no talk about General Elections in December.
Nor was Saint Lucia the first Caribbean Community (CARICOM) nation to have a VAT-Free Day.
Saint Vincent & The Grenadines (SVG) Prime Minister Dr Godwin Friday announced on December 2 that its VAT-Free Day would be on December 19.
The Saint Kitts and Nevis Government announced two ‘Discounted VAT Rate Days’ (December 12 and 20) – and in early-December there was uncertainty as to whether Barbadians would get one for Christmas.
Earlier this year, the new Trinidad & Tobago government announced new VAT adjustments in its first (2025-2026) budget.
The usual cynics choose to describe a VAT-Free Day as “the equivalent of one day’s backpay out of a year.”
But just watching how Saint Lucians and Vincentians flocked to the supermarkets, hardware stores, building materials outlets and other participating businesses tells a different story about just-how-much what seems a small gesture was a big thing for so-many.
Every shopper approached by the press said they’d “long” been “waiting for something like this.”
It was clear those Saint Lucians who planned to take advantage of the 12.5% VAT discount had thought-out what they wanted to get.
While most consumers may have concentrated on purchasing food and other imported grocery items they say “keep rising each time” they went to the supermarket, there were also many who chose to purchase furniture, refrigerators, stoves, household, kitchen and bathroom items.
For many, it was “a trial” or “a first experience”, with quite-a-few hoping VAT-Free Day will become (at least) an annual affair.
But for all, it was a welcome pre-Christmas One-Day tax-break that was of help and benefit to each who made use of it.
The entire Saint Lucia package was well-worked-out, with the Chamber of Commerce and the Ministry of Commerce cooperating to ensure a seamless process.
The government indicated participation by businesses was voluntary, but those not taking part would have to submit the VAT charges they collected.
Consumers looked forward to their favourite shopping outlets participating and when the island’s biggest supermarket chain wasn’t listed among those the government announced, the criticism and threats of boycott were loud-enough to probably have led to the company announcing it was on board – and would recalibrate its points-of-sale machines to allow customers to save their savings.
The system was so-organized for government to collect the taxes collected from non-participating businesses, but, understandably, customers wanted to get that feeling of not being taxpayers on that day.
Some praised “God” or thanked “The Government” and/or “The Prime Minister”, one actually “wishing Mr. Pierre long life, so he can do it again next year…’
Doubtlessly, the public response suggests people have no problems accepting what others see as the smallest of mercies, when it comes to managing their expenses or stretching their dollars – and cents.
The Ghettonomics of flower-income households saw many low-income persons invest in buying flour to save on buying bread but also had many doing the basic Arithmetic of Home Economics.
Many compared what they’d really save on costs of what PM Pierre likes to refer to as “imported inflation items” (like canned Tuna Fish) that seem to rise at rates of over-12.5% with each new shipment.
No business will have gained or lost from not participating, except that those that didn’t take part wouldn’t be allowing customers to benefit — but the choice factor kicks-in here, as a long list of participating businesses was published soon after the December 22 date was officially announced on December 12.
Noteworthy too, is that as far back as August (a month before the Prime Minister announced of his intent in Soufriere), then Commerce Minister Emma Hippolyte was already in discussions with the Chamber about totally removing VAT on 70 basic (mainly food) items.
The new Commerce Minister (Dr Ernest Hilaire) will benefit from the nation’s experience of the first VAT-Free Day and Government will be in a better position, after the analyses, to decide if and when the next VAT-Free Days will be.
As per usual, pundits will find ways to assess how-much or how-little citizens saved per average; and pandits will play the ‘One-day’ card like if they forgot that it takes cents to make a dollar – and every cent saved makes dollars’ worth of sense.
It goes beyond saying that Saint Lucia’s first VAT-Free Day was well-thought out and consumers’ responses — from North to South – showed they quite appreciated the rare opportunity of not having to pay tax on taxable items.
Ironically, every cent and dollar saved by each person on Monday was subtracted from the Government’s annual collection of what’s normally (and loosely) called “Taxpayers’ money”, normally spent on provision of free government supplies and services for the benefit of all taxpayers – including those who evade or avoid paying.
Even among those who saved are many who simply don’t care (yet) about the stats, figures and mechanisms — and who, now with the experience of the first, will surely plan even better, should there be another opportunity.
But until then, it’ll be very interesting to know just how-much the Government gave-up and how-much people saved – in total and on average on Monday.
The sum will only be known after the figures are crunched by the Inland Revenue Department (IRD), Treasury, Commerce Ministry and the Chamber.
Then too, some among the eternal Doubting Thomases will come to realize (even if refusing to accept) that the island’s first VAT-Free Day was the helpful gesture it was intended to be — and not the jest some jesters jested it would have been!