Minister for Commerce Emma Hippolyte has responded forcefully to criticisms levelled by United Workers’ Party (UWP) Babonneau candidate Titus Preville, who took aim at the government’s recent efforts to alleviate the burden of rising consumer prices. Speaking at a pre-cabinet media briefing, Minister Hippolyte rejected Preville’s claims and questioned his record during his own tenure as a senior civil servant in the Ministry of Commerce.
Preville, a former Permanent Secretary, had claimed during his official launch at the Babonneau Secondary School that the Saint Lucia Labour Party government was misleading the public with its announcement of 70 zero-rated items, 25 of which, he said, were already VAT-exempt. “You want to talk about obfuscation? You want to talk about underhanded and double-dealing? You want to talk about, to use the Prime Minister’s favourite phrase, flashing mirrors?” he asked supporters.
But Minister Hippolyte was quick to challenge his assertions. “Mr. Preville was the technical head of the Ministry of Commerce for all this time, and he has not prepared; he did not present one policy statement to the government that was not implemented. What head is he now going to put to bring new suggestions?” she asked.
She pointed to the strides made by the ministry since the Labour administration came into office, noting improvements in the price control regime and expanded support for micro, small and medium enterprises (MSMEs). “If you look at where the Ministry of Commerce was yesterday and where it is today, [there is] a vast difference,” she stated. “When you look at our MSME program, when you look at our Love St. Lucia program that’s a ministry that has moved way beyond where Mr. Preville was.”
Addressing the controversy over the 70 zero-rated items, Hippolyte said the government had been transparent. “We were very clear that there were certain items that were VAT exempt and that we were bringing in order to control rising prices,” she said. According to the Minister, the decision was made after consultations with the Ministry of Commerce and the Chamber of Commerce.
She further clarified the distinction between VAT-exempt and zero-rated goods terms that are often misunderstood by the public. “If an item is VAT-exempt… there is no VAT on the item for the consumer. However, the business person cannot claim the VAT associated with the sale of that item,” she explained. “When an item is zero-rated, the consumer still doesn’t pay VAT, but the business can claim the VAT incurred. That savings can be passed on to the consumer.”
Minister Hippolyte concluded by emphasizing the broader intent of the policy: “We are working not just to cushion prices in the short term but to build systems and programs that support long-term economic resilience for ordinary Saint Lucians.”
