Saint Lucians will continue to benefit from a value-added tax waiver on solar panels and related equipment after Parliament approved a five-year extension of the measure to August 2031.
The extension is aimed at reducing the cost of renewable energy equipment, encouraging greater adoption of solar power and supporting the Government’s wider efforts to reduce energy costs and dependence on fossil fuels.
Prime Minister and Minister for Finance Philip J Pierre, during an address to Parliament this week, said the measure reflects a growing international movement towards alternative sources of energy, particularly among countries that do not produce fossil fuels.
“As you are well aware and members are aware, there is a movement in the entire world, particularly countries that do not produce fossil fuels, to look for alternative means of energy,” Pierre told Parliament.
He identified solar and wind power as the two main alternatives being pursued.
“And these two alternative means are usually the sun, solar or the wind,” he said.
Under the approved measure, qualifying solar energy goods will be zero-rated for VAT purposes, meaning consumers will not pay VAT on the specified equipment.
“We are causing it to be zero rated, which means you will pay no VAT on these items,” Pierre said.
He argued that the waiver would lower the cost of purchasing solar equipment while contributing to the Government’s efforts to address the cost of living.
“Thus, lowering the cost of these items,” the Prime Minister said.
He added that the measure represents “another move that the government is making” to reduce the financial pressures facing households and businesses.
“Another move that the government is taking to reduce, albeit indirectly, the cost of living, the cost of doing business in Saint Lucia,” Pierre said.
MP for Babonneau and Minister in the Ministry of Tourism John Paul Estephane also supported the measure, describing it as more than a tax policy.
“I rise in strong support of the motion to zero-rate goods associated with the supply of solar energy,” Estephane said.
He described the initiative as “a strategic intervention in energy policy, economic competitiveness, and sustainable development”.
Estephane said the measure could be particularly important for small, micro and medium-sized enterprises, which he described as “the backbone of our tourism and commercial sectors”.
Minister for Public Utilities Keithson ‘Kiffo’ Charles said the VAT waiver forms part of the Government’s broader push towards a more sustainable energy system.
“The Ministry of Public Utilities and this Labour Party government, under the guidance of this great Minister of Finance, we are aggressively driving the transitional or the transition towards a sustainable energy mix,” Charles told the House.
He said the Government had previously promised to create conditions that would protect Saint Lucia from fluctuations in international energy prices.
“I promised that we were creating an enabling environment to shield this country from global price volatility,” Charles said.
According to Charles, the passage of the resolution provides tangible evidence of that commitment.
“Well, Mr. Speaker, this resolution before the House today is undeniable proof of this promise,” he said.
The extension keeps the VAT relief on qualifying solar energy equipment in place until August 2031, providing households and businesses with a longer-term incentive to invest in renewable energy while supporting the country’s transition towards a more sustainable energy mix.