Saint Lucians with outstanding taxes have an opportunity to wipe away 100 per cent of the interest and penalties attached to their debt, as government intensifies efforts to collect millions still owed to the state.
Prime Minister Philip J. Pierre says the government’s tax amnesty is beginning to produce results, with taxpayers able to benefit from the full waiver once they settle their outstanding liabilities.
Now, government plans to take that effort further with the establishment of a dedicated Tax Amnesty Unit aimed at strengthening compliance and improving revenue collection.
Pierre, speaking at Monday’s Pre-Cabinet press briefing, said there is enough outstanding tax revenue to make a meaningful difference to the country’s fiscal position, making improved collection a priority.
But the tax push is unfolding alongside another financial challenge.
Saint Lucia must also strengthen its compliance with international tax requirements to protect the country from the consequences of being blacklisted.
Pierre revealed that legislation dealing with international tax matters is expected to go before Parliament at its next sitting as the country works to meet its international obligations.
He stressed that Saint Lucia is not currently being blacklisted, but must take specific measures to ensure that does not happen.
While pursuing outstanding revenue and tightening compliance, government is also moving to reduce the tax burden on households.
Recent changes to the Income Tax framework have expanded the deductions available to taxpayers, including medical expenses and associated travel.
First-time land buyers are also being offered additional relief through a 50 per cent income tax deduction on interest paid on loans used to purchase residential land of up to 22,000 square feet.
The measures effectively place government’s tax strategy on two tracks: collecting more of what is already owed to the state while providing targeted relief intended to leave more money in the hands of taxpayers.
