St. Lucians Paying Less Income Tax

St. Lucians have begun to benefit from the reduction of income tax announced by the Prime Minister during his last Budget Address in April.

Back in April, Prime Minister Honourable Dr. Kenny D. Anthony, who is also Minister of Finance, announced that as a result of further tax reduction measures to bring relief to St. Lucians, some 3,000 persons earning $12,000 per annum and less have been removed from the tax roll and are no longer be required to pay income tax.

This measure came into effect as of July 2001, which was reflected in the latest  pay packets of public servants as well as some private sector employees.

As a result of the increase in the income tax threshold to $12,000, other persons earning over that amount have also been benefiting from the reduction in income tax payments, which is now calculated on amounts over $12,000 per annum.

The Prime Minister says the reduction in income tax “is another manifestation of the government’s commitment to reduce income tax for as long as the economy can afford.”

Meanwhile, Director of Inland Revenue Trevor Brathwaite says the Inland Revenue Department (IRD) is still in the process of regularizing the issuance of new tax codes to take advantage of the new changes.

He says some adjusted codes have already been sent to several private sector employers for verification of their implementation of the reduced tax codes and the Department is still awaiting responses.

Mr. Brathwaite also says that while the system is largely in place in government departments, some patience may have to be shown in the case of private sector employees due to late filing and tardy provision of information, among other things.

Mr. Brathwaite estimates, however, that some 3,000 St. Lucians earning up to $12,000 per year will be removed from the tax roll as a result of implementation of the new tax reduction measures.

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