CASTRIES, St. Lucia, CMC—The primary opposition United Staff Celebration (UWP) Wednesday questioned the St. Lucia authorities’s determination to grant a zero-percent levy to builders of a venture in Rodney Bay, north of right here, saying it violates the two.5-percent Well being and Citizen Safety Levy.
In October final yr, the federal government defended its determination to implement the levy, arguing that it “is one measure that goals to help our economic system and supply obligatory funding for important companies, particularly well being and safety.”
“We as soon as once more take this chance to state that the two.5 p.c well being and safety levy is not going to be on meals gadgets, remedy, medical gear, safety gear, and chosen constructing materials. Subsequently, we don’t count on a rise within the value of these things at their level of buy domestically except costs improve abroad,” the federal government mentioned.
Nonetheless, in a July 17, 2024, letter to Prime Minister Phillip J Pierre, the UWP and Opposition Chief Allen Chastanet referred to as on the federal government to repeal the levy, including that selective exemption of the measure “is each illegal and unjust.”
Chastanet mentioned that the St. Lucian public solely grew to become conscious of the exemption for Rodney Bay Metropolis Heart Ltd. final Friday.
“The Well being and Citizen Safety Levy Act, which mandates a tax imposition of two.5 p.c for a interval of two years on a big selection of products and companies, has had a predicted disastrous impact on our folks and economic system. Since its introduction, it has been riddled with inconsistencies and has compounded the impression of inflation on households and companies.’
Chastanet mentioned what’s regarding is that the federal government had indicated in the course of the passage of the laws that “the income from the levy can be used to bolster our well being and safety sectors.
“Regrettably, it after that grew to become clear that this was an untruth and that this tax was, in actual fact, carried out to adjust to phrases imposed by the Caribbean Growth Financial institution and World Financial institution for policy-based loans. So, the tax was handed for income restoration functions and had nothing to do with well being and safety, as you had represented.”
The Opposition Chief mentioned the levy has negatively impacted the native economic system, which is recovering from the impression of the coronavirus (COVID-19) pandemic.
“By taxing important items akin to clothes and footwear, furnishings, and telecommunications companies, the levy was sure to straight impression the general public, particularly the poorest and most susceptible in our society.”
He mentioned that whereas the federal government promised that the levy wouldn’t impression the price of meals, “time has confirmed in any other case, as important companies like transportation and enterprise companies have been topic to the levy.”
Chastanet mentioned that the not too long ago proposed exemption of the levy for items and companies to be equipped for the Rodney Bay Metropolis Heart developer “is subsequently understood however illegal and manifestly unfair.
“Nowhere within the Act is there a provision that grants Authorities the authority to selectively exempt items and repair suppliers from this levy for an ‘permitted developer’ as you now search to do. Rightfully, all exemptions or will increase ought to be granted to the good thing about all or none”.
Chastanet mentioned that the opposition is “subsequently left to take a position that this explicit concession is important to steer the developer to proceed with the funding, and also you now respect that the levy is a deterrent to funding.
“This selective exemption isn’t solely illegal because the Act doesn’t present the enabling provisions for such exemption, however equally, it’s patently unfair to all our residents. It additionally raises critical questions as to how Inland Income and Customs will be capable of adjust to this Order legally”.
He mentioned the choice “insults the abnormal St. Lucians who battle day by day to hold this added burden. It’s much more egregious that you haven’t appreciated their sacrifices and haven’t equally seen it obligatory to alleviate them.
“Prime Minister, this blatant inconsistency sends a distressing and unacceptable message that the sacrifices are to not be made by all. We implore you on behalf of all St Lucians and companies alike to right away appropriate this injustice and as a substitute use your authorized authority beneath the Act to terminate this oppressive levy for everybody,” Chastanet wrote.
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