Unprecedented Cost-Cutting Policies to Lower Prices of Everyday Food Items for Saint Lucian Consumers
In July, Saint Lucia’s legislators will meet in Parliament to debate an exciting policy proposal to remove Value Added Tax (VAT) on up to seventy (70) essential and everyday food items to lower food prices for Saint Lucian consumers and households.
Prime Minister Hon. Philip J. Pierre first announced the government’s intention to remove VAT on several categories of food items during his budget address in April. This week, Prime Minister Pierre explained in detail how the VAT removal will result in reduced prices.
“So there’s no VAT paid on 70 food items in the country. Some food items were exempt, and some foods were standard. They’re not going to be exempt, they’re going to be zero rated – no VAT is going to be paid. Those food items that were standard, they ought to be an automatic reduction in price for those that were standard. Those foods that are exempt, we expect to see a change in the price. But for those foods that were standard rated, they become zero-rated – so there ought to be an automatic reduction in price of 12.5%.”
Consumers can expect the retail prices of dozens of food items to decrease by at least 12.5% immediately after the requisite legislation passes in both Houses in July.
This cost-cutting measure is in addition to the removal of the 6% service charge on numerous price-controlled foods that took effect on June 1, 2025.
The Prime Minister and his Cabinet of Ministers continue to work closely with the private sector, namely the Saint Lucia Chamber of Commerce, to find solutions to mitigate the impact of escalating food prices on local consumers.
