Political Tensions Rise Over Saint Lucia's VAT Exemptions on 70 Goods

A government initiative aimed at zero-rating 70 essential items in supermarkets across Saint Lucia is poised to launch this weekend, amid rising political strife and allegations of deception from the opposition. During a recent Cabinet press briefing, Commerce Minister Emma Hippolyte defended the initiative against statements made by United Workers Party (UWP) candidate Titus Preville, who accused the government of misleading the public regarding the zero-rating.Hippolyte emphasized that this policy is part of a comprehensive effort to alleviate rising living costs through a combination of VAT exemptions and zero-rated goods. She clarified that discussions with stakeholders, including the Chamber of Commerce, were essential in formulating the zero-rated item list. Importantly, she highlighted that zero-rating allows businesses to reclaim VAT costs, fostering lower prices for consumers.However, UWP officials, including former minister Guy Joseph, dismissed the initiative as mere political theatrics, suggesting it fails to address underlying factors contributing to high prices. During a UWP briefing, Joseph criticized the government, asserting that their list is misleading, asserting that some items were already exempt from VAT and proposing more substantial solutions for the community.