The government of St Lucia is being commended by Accountant, Richard Peterkin, for its approach in determining the way forward on its promised VAT reduction.
Minister in the Ministry of Finance, Dr Ubaldus Raymond, has confirmed that a pronouncement will be made in October, but public sentiment seems to be largely one of disappointment, that the reduction was not immediate. Peterkin says the government is absolutely correct to not just jump in to a VAT reduction for appeasement. He says it is best to analyze the matter and make an informed decision on what it best for the long term interest of eth country.
The government’s decision to reduce and eventually remove VAT was based on the premise that St Lucians needed a relief from the burden of heavy taxes. The promise was made as part of the UWP’s Five to Stay Alive Plan. Critics of the government say it is now clear that the party had not given rational thought to how, or even if indeed a VAT reduction was possible given the economy. The government, in its defence says the party, like St Lucians was not given the accurate picture of just how bad the economy and the country’s fiscal position was under the former administration. The government says it is still in a process of assessing where the country is truly at.
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