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Press release UWP Calls For VAT Report Card


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Press Release Emanating from the Officer of the United Workers Party Political Leader

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Press release UWP Calls For VAT Report Card

  1. 1. Upstairs AF Valmont, P.O. Box RB 2497, Rodney Bay, Gros Islet, Saint Lucia Tel/Fax: (758) 572-4949 FOR IMMEDIATE RELEASE: Contact: Guy Joseph 721- 9310 UWP C A L LS F OR REPORT C ARD A F T ER ONE Y E AR O F V A T Castries, Saint Lucia 01 October, 2013 One year after the imposition of what he had, in Opposition, desc the Value Added Tax. During the delivery of his 2012-2013 Budget, Prime Minister Anthony outlined a number of policy measures, promises and claims related to the imminent implementation of VAT. According to Dr. Anthony: a macro-economic effect is that VAT In designing the VAT, we (the Government) have taken the deliberate decision to exempt capital goods used in the production process in respect of the hotel sector and related services, a reduced rate of 8% will apply until March 31st , 2013. Between September 1, 2012 and March 31, 2013 the impact on the sector will be assessed and a final determination will be made on the rate to be applied beyond March, 2013. in the final analysis VAT will benefit the country as a whole as it will provide the needed financial resources to allow the Government to be in a better position to provide for the citizenry and to better manage the fiscal affairs of the country. As we mark one year after the implementation of VAT, it is a timely and critical juncture for the Prime Minister and Minister with responsibility for Finance to report to the nation on: 1. Revenue generated from VAT over the past year? 2. How has that revenue being utilized to benefit the citizenry? 3. Effects of the 1.5% increase on the hospitality sector, ref. 2013-2014 Budget? 4. Has VAT had a positive impact on investments and the manufacturing sector? 5. How is the revenue from VAT being used to reduce the spiraling unemployment problem which in manifested by an increase of 3% in 2012 over 2011? Mindful of the persistent calls from key sectors such as the Saint Lucia Medical and Dental Association and cries of despair from a population reeling under the impact of the Value Added Tax, the United Workers Party reiterates the call for the removal of VAT on medication. We further call for Government to give serious consideration to a reduction of the VAT rate from the existing 15% to
  2. 2. enable greater disposable income and to stimulate economic activities. Government is called upon to address repeated calls by the Saint Lucia Manufacturing Association for adjustment in the collection of VAT charges to a post production regime. It is our hope that the Government of Saint Lucia will use this juncture one year after the imposition of the Value Added Tax to reflect on the negative impacts and to initiate a process to effect the necessary positive adjustments. Ends/