The government has approved sweeping changes to Saint Lucia’s income tax laws, slashing penalties for overdue taxes and introducing a major new incentive aimed at helping first-time land buyers take their first step toward homeownership.
The amendments, passed in the House of Assembly on Wednesday, deliver two significant benefits for taxpayers. Interest charged on outstanding tax liabilities has been cut by 50 percent, falling from 12 percent to 6 percent, providing immediate financial relief to businesses and individuals with unpaid taxes.
Taxpayers will also have more time to file their annual income tax returns. The filing deadline has been extended from three months to five months after the end of December, giving businesses and individuals additional time to prepare their returns.
Prime Minister Philip J. Pierre said the previous three-month window posed challenges, particularly for larger businesses that must complete extensive audits before filing.
The legislation also introduces a new tax incentive designed to make land ownership more affordable for first-time buyers. Individuals purchasing plots of land measuring less than 22,000 square feet will now be eligible to claim an income tax deduction of up to 50 percent of the interest paid on qualifying loans.
According to the Prime Minister, the measure expands on existing housing incentives by recognizing that purchasing land is often the first and most significant hurdle to building a home. He said reducing the tax burden associated with land purchases will leave buyers with more capital available for construction.
The amendment also broadens the government’s previous housing support framework, which focused mainly on mortgages used to purchase or construct completed homes.
Looking ahead, Prime Minister Pierre indicated that additional legislative measures are being developed to encourage more young Saint Lucians to invest in real estate and become landowners.
