Personal Income Tax Amendments
The government has moved to significantly ease the tax burden on citizens with a series of amendments to the Personal Income Tax Act, unveiled during the February 3 sitting of Parliament by Prime Minister and Minister for Finance Philip J Pierre.
Presenting the legislative changes in the House, Pierre said the amendments are designed to provide targeted relief to families, young professionals and retirees, while promoting a stronger culture of savings and investment across Saint Lucia.
Among the key changes is a substantial increase in the child allowance. The maximum claimable amount per child under the age of 18 has been doubled, rising from $2,500 to $5,000. The Prime Minister said the adjustment is intended to better support families facing the rising cost of raising children.
Significant relief has also been introduced for those caring for elderly relatives. The dependent relative allowance has been increased dramatically from $350 to $5,000, a move Pierre said reflects the high cost of caring for aging family members.
Mortgage interest relief has also been expanded, with taxpayers now able to claim up to $40,000. The Prime Minister noted that the previous legislation capped the amount, limiting relief particularly for young professionals. Under the revised Act, individuals without children or dependent relatives can now fully claim their mortgage interest, offering greater support to those in the early stages of their careers.
In a bid to encourage savings and financial planning, the amendments also allow taxpayers to claim up to $10,000 in credit union shares. Pierre said the measure is aimed at fostering a savings culture, promoting portfolio diversification and strengthening financial resilience, particularly among younger citizens.
One of the most far-reaching changes announced is the full exemption of pension income from personal income tax. Under the amendments, all income derived from pensions—both government and private—will no longer be subject to personal income tax. The Prime Minister said the move addresses longstanding concerns from pensioners who questioned why they were taxed again after contributing throughout their working lives.
The amendments form part of the government’s broader fiscal strategy to ease financial pressures, encourage responsible financial behaviour and recognise the economic realities faced by households, professionals and retirees across Saint Lucia.
