Pierre Announces Service Charge Removal, VAT Cuts on Essential Goods
At Monday’s pre-Cabinet press event, St Luica’s Prime Minister Philip J. Pierre revealed consumer relief measures including removing the 6.5% service tax on commodities under price control and promised VAT elimination on a few chosen products by July 1.
Given import costs remain constant, the immediate abolition of the service charge is likely to lower prices on basics including infant food, cereals, cement, dairy products, edible oils and agricultural items.
“This means that, should there be no increase in cost from the imported country, the cost of these controlled items should drop by six and a half percent,” Pierre informed reporters.
Following business sector consultations, a second set of cutbacks will take effect in July with the 12.5% VAT eliminated on certain product categories.
“We are discussing right now with the Chamber of Commerce, and the 12.5% VAT on several categories of products will be removed, which will lead again in an immediate reduction in the price for the consumer, once the cost has not increased from overseas,” the Prime Minister added.
He praised cooperation between the Ministry of Commerce and corporate executives.
Price-controlled goods include: baby food, baby fruit juices, cement, cereals, cornflakes, cornmeal, oats, cheese, powdered chocolate, cocoa, corned beef, wheat flour, garlic, margarine, mackerel, evaporated milk, edible oils, onions, peas and beans, potatoes, powdered soup (400g or less), packaged rice, salt biscuits, sardines, tuna, soap, toothpaste and all agricultural products that fall under price control.
