Saint Lucia to remove VAT on 70 food items in major cost-cutting move

Saint Lucia: In a bold move to minimize financial burden on citizens, the Government of Saint Lucia has announced plans to remove Value Added Tax (VAT) on up to 70 everyday food items just weeks after eliminating 6% service charge on price-controlled goods.  

The announcement was made by the authorities through the official page of the Office of the Prime Minister of Saint Lucia, where it was confirmed that the decision has been taken to reduce costs for Saint Lucians and to control the impact of escalating food prices on local consumers.  

As per the information shared, consumers can now expect the retail prices of dozens of food items to decrease by at least 12.5% immediately after the requisite legislation passes in both houses in July. The announcement was first made by the Prime Minister during a Pre-Cabinet press briefing held in May where he emphasized that the plan to reduce VAT is under discussion with the business sector.  

“We are discussing right now with the Chamber of Commerce, and the 12.5 per cent VAT on several categories of products will be removed, which will lead again to an immediate reduction in the price for the consumer, once the cost has not increased from overseas,” PM Pierre said during his address at the post cabinet meeting.  

While shedding light on the price controlled goods, the Prime Minister said that the new prices will take effect on items including baby food, baby fruit juices, cereals, Cornflakes, oats, cheese, Cement, chocolate, cornmeal, evaporated milk, onions, wheat flour, garlic, margarine, mackerel, corned beef, cocoa, peas, edible oils, potatoes, beans, packaged rice, powdered soup, sardines, tuna, toothpaste, soap, salt biscuits and other agricultural products that fall under the price control category.  

Mixed Reactions to Economic Relief Plans Ahead of 2026 Elections

While the government promise to deliver an economic relief through these initiatives, the announcement has met with mixed public reactions. Saint Lucians on social media have been pointing out timing of these decision, which closely aligns with the upcoming general elections in 2026.  

A social media post by a local influencer which got immense attraction read, “So let me get this straight… You sat in Cabinet for FOUR WHOLE YEARS, watched people suffer through unbearable food prices, and only NOW, months before a general election, you want to pass a Cabinet Conclusion to remove VAT from 70 everyday food items? Really? Was poverty not real in year one? Or two? Or three? Or Four? Now you want praise for a last-minute scramble? Please. Y’all need a lash of lolobef on y’all tête!”  

However, this was not just an opinion by the influencer alone, many Saint Lucians also commented under the official post from the Prime Minister office citing their concerns.  

A user named Chantelle Magnilda Alfred wrote, “Elections round the corner, protecting their votes. Questions how long it's will be for?” 

Another user named Trev Luce said, “Since election is close and the government wants to remain in office, just give everyone the $1500 as promised during the campaign. Just a suggestion.”  

“Why now? Why now? The nation has been crying for years! What about the fuel you have above 16 for years? When will we get a break on this....wow wow wow,” wrote Calentia Edwardson on Facebook.