CASTRIES, St. Lucia Oct – The St. Lucia government has reiterated the benefits of the 2.5 percent health and security levy (HCSL) that went into effect on October 2 even as the main opposition United Workers Party (UWP) said the measure is an additional burden on St Lucians already grappling with a rising cost of living, the adverse impact on the local business community, and the volatile global economic climate.
In a statement, the government said that the levy was devised to improve its financial ability to provide quality healthcare services to the public and reinforce St Lucia’s national security infrastructure for a safer and more secure country.
The statement said that the HCSL, which got parliamentary approval in July this year, is charged on imported goods and services at a rate of 2.5 percent.
“The Department of Customs and Excise applies the HCSL to goods entering St. Lucia that are not on the exemption list. The Inland Revenue Department collects the HCSL from service providers.
“Food items and select medicinal products are exempted and will not attract the HCSL. Furthermore, goods that did not attract Value Added Tax (VAT) and zero-rated goods will not be subjected to the HCSL. Thus, the implementation of the HCSL should not cause the price of food items and medicine to increase,” it added.
The government said that the HCSL is expected to generate approximately EC$33 million (One EC dollar=US$0.37 cents) in new revenue, adding “this revenue will improve the government’s fiscal ability to expand public health services, further reduce the cost of medical services and provide a higher quality of healthcare services to improve the health and wellbeing of our nation.”
But the UWP has maintained that even before the imposition of the tax, essential items such as bread, electricity bills, with a 30 percent increase, food in supermarkets, LPG cooking gas, petroleum, diesel, and even bus fares “have seen unsustainable price hikes.
“It is evident that this tax has burdened an already dire situation. Therefore, we demand an immediate and total suspension,” the UWP said, adding that “the business community is also grappling with the repercussions of this policy.”
“The health and security levy is unquestionably hindering the private sector’s ability to expand and create jobs, especially considering the unemployment rate, which stands at unacceptable levels, according to the Economic and Social Review.
“The tax must be immediately and completely suspended. We are disappointed that the government did not heed the Chamber of Commerce’s call to postpone the tax until January 2024,” the UWP added.
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