Saint Lucia Plans Major Cost Reduction by Eliminating VAT on 70 Food Items

Saint Lucia plans to eliminate VAT on up to 70 essential food items to reduce costs and counter rising food prices, following recent removal of a 6% service charge on price-controlled goods.
The VAT reduction, expected to cut retail prices by at least 12.5%, will apply after legislation passes in July; discussions are ongoing with the business sector to finalize implementation.
The move has sparked mixed reactions, with critics accusing the government of election-driven timing, noting that action is being taken only months before the 2026 general elections.

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