By Caribbean News Global
CASTRIES, St Lucia – The removal of 6.5 percent service charge on all price-controlled food items effective June 1, 2025, minister for commerce, Emma Hippolyte, says, “data received thus far confirms that the six percent price reduction policy has been applied as intended, and that businesses remain compliant with the measure.”
According to a GIS press statement:
“The commerce minister explained that these policies are in direct response to increasing global food prices, in order to ease economic pressure on Saint Lucians.”
“Effective June 1, this government removed service charges on all price-controlled products as part of government’s ongoing efforts to ease the burden of increased prices. We did this through Statutory Instrument #82 of 2025. This measure took effect from June 1 until May 31, 2026. The suspension applies to a broad range of essential goods including packaged rice, flour milk, cooking oil, potatoes, baby food and canned items.”
PM Pierre reverses service charge and VAT amid economic buoyancy
“Your wellbeing is our priority,” added prime minister, minister for finance, economic development and the youth economy and minister for justice and national security, Philip J. Pierre, in a social media post.
“By affirmative resolution, parliament moved to eliminate VAT on 70 essential food items, effective August 2, 2025, delivering real savings to our people where it matters most: at the grocery checkout.
“These bold steps are part of our ongoing commitment to ease the cost of living and put people first, ensuring that every Saint Lucian family has access to affordable, nutritious food.”
Monitoring the implementation
The minister for commerce advised that the consumer affairs department, is actively monitoring the implementation of government’s price control policies.
“Businesses are required to submit price control calculation sheets to gain approval for both wholesale and retail prices. These prices are determined using a legitimate fixed or percentage markup, ranging from 7.5 percent to 11 percent at the retail level and 10 to 20 percent at the wholesale level.”
Consumers can play their part by contacting the Consumer Affairs Department Hotline if they have any concerns or observations at 468-4239.
In furtherance of the government of Saint Lucia “in its desire to reduce the cost of food,” the 2025 budget speech said:
“New and affordable source markets are being identified. Government has facilitated the importation of poultry, pork, beef and meat from Brazil in search of reduced prices. Government will consider providing assistance to importers using the new source markets.”
