Ex-Petroleum Dealers Association president Everistus Jn Marie cites the new fuel tax as a “clever” move to offset the Value Added Taxes [VAT] reduction.
In April 2017, the Allen Chastanet Administration imposed an additional 60% tax on petroleum imports, increasing the rate from EC $2.50 per gallon to EC $4.00 per gallon. According to a government statement, the revised tax measure is,
“Due to the global financial situation, the Government of Saint Lucia is structuring its policy to limit the number of loans taken to repair and rehabilitate the island’s road network.”
The former Saint Lucia Labor Party Administration previously increased vehicle licensing rates by 50% for the same purpose in 2015/16.
The Ex-Petrol Dealers Association president expects the 60% or EC $1.50 tax increase on petrol products to impact the costs of goods and services. Listen below.
The Allen Chastanet Administration made good on United Workers Party campaign rhetoric to reduce V.A.T. The Allen Chastanet Administration cut the V.A.T rate by 2.5%, from 15% to 12.5% in 2016. The 2.5% VAT reduction represents a loss of approximately EC $53 million dollars in annual state revenue.
Economic Development and Transport Minister Guy Joseph is not anticipating increases in public transportation costs from the additional petrol tax scheduled to take effect on June 1st, 2017.