The Government of Saint Lucia, in keeping with its regional commitments and the decision of CARICOM Heads of Government in October 1992 implemented the third and fourth phases of the Common External Tariff on January 01, 2000. The joint implementation of the final phases significantly reduced administrative costs but also caused a loss of revenue from import duties of approximately EC$9.3 million.

In 1999, Cabinet approved a Consumption Tax re-tooling allowance to neutralize any negative impacts on the manufacturing sector that may have been caused by changes or increases in the Consumption Tax.

Based on previously set criteria, the Ministry of Commerce has calculated the rebate for Consumption Tax paid in 1999. The following rebates will be granted to manufacturers.

Food beverage Producers 60% of Consumption Tax

Paper and products " 40% " " "

Wood, wooden furniture " 40% " " "

Electrical products " 20% " " "

Chemical and Construction " 40% " " "

Printing " 40% " " "

Textile and Wearing Apparel " 40% " " "

Plastic and rubber products " 40% " " "

A proposal for calculating the value of the rebate will soon be finalised, thus allowing manufacturers to use the incentive. A preliminary assessment shows that there will be little negative impact on the manufacturing sector, and in some cases there will be a reduction in the effective Consumption Tax rates.

[Site Help]

© 2001 Government Information Service. All rights reserved.

Read our privacy guidelines.