Parliament has given the green light to a motion tabled by the new St. Lucia government of Prime Minister Phillip J Pierre to amend the Value added tax (VAT) legislation providing for the island’s first VAT-free shopping day.
Parliament met for the first sitting since the December 1 general election that saw the return of the St. Lucia Labour Party (SLP) with an increased majority.
A government statement said that as a result of the passage of the legislation ‘consumers and businesses can look forward to a major boost in holiday shopping activity’ On December 22 this year.
It said participating businesses will offer eligible goods at least 12.5 per cent cheaper on that day, and that ‘for businesses, the VAT-Free Day is designed to encourage higher foot traffic, stronger sales, and increased commercial activity, supporting wider economic momentum at a time when many businesses see peak seasonal demand’.
The statement said that participation in the VAT-free day is voluntary and that those businesses wishing to participate in the initiative ‘must register with the Inland Revenue Department (IRD)’ and that those ‘that choose not to participate will continue to charge VAT and remit VAT revenue to the State as required by law.
‘The government thanks the private sector for cooperating and participating in this initiative, aimed at delivering immediate consumer relief while supporting stronger business activity across the country,’ the statement added.