Prime Minister Philip J. Pierre unveiled consumer relief measures at Monday’s pre-Cabinet press briefing, scrapping the 6.5 per cent service charge on price-controlled goods and pledging VAT removals on select products by July 1.
The immediate elimination of the service charge is expected to reduce prices on essentials such as baby food, cereals, cement, dairy products, edible oils and agricultural goods, provided import costs remain stable.
“This means that the cost of these controlled items should decrease by six and a half per cent if there’s no increase in cost from the imported country,” Pierre told reporters.
A second phase of cuts will take effect in July, with the 12.5 per cent VAT abolished on unspecified product categories following consultations with the business sector.
“We are discussing right now with the Chamber of Commerce, and the 12.5 per cent VAT on several categories of products will be removed, which will lead again to an immediate reduction in the price for the consumer, once the cost has not increased from overseas,” the Prime Minister said.
He thanked business leaders and the Ministry of Commerce for their collaboration.
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.
Denial of election motives
When pressed on whether the moves were tied to elections, constitutionally due by mid-2026, Pierre dismissed the suggestion, pointing to his administration’s record.
“Look at our history,” he responded. “Look at the things we began to do from our first year in government and make a checklist. This government promises, and this government delivers. We don’t deliver for elections… I can assure you that these things are for the development of the people of Saint Lucia.”
Though he acknowledged elections as an inevitable political reality, Pierre insisted: “These are not for elections, these things are for people.”