Saint Lucia is set to mark a historic first after Parliament unanimously approved an amendment to the Value Added Tax Act, paving the way for the country’s inaugural VAT free shopping day on Monday, December 22, 2025.
The motion was tabled by Prime Minister Philip J. Pierre during the inaugural sitting of the thirteenth session of Parliament on December 16.
According to the Office of the Prime Minister, the amendment clears the path for consumers to benefit from the temporary removal of the standard 12.5 percent VAT on eligible goods, offering immediate financial relief at the height of the festive season.
Addressing the House, Prime Minister Pierre outlined the purpose of the amendment and confirmed the date.
“So what we’re doing today, Mr. Speaker, is we are amending the value added tax, schedule one, number three, to proclaim the 22nd of December, which is Monday, as the VAT free day,” he said.
“So Monday, the 22nd of December will be the VAT free day, Mr. Speaker. That means that the entire public, if they purchase from businesses that are involved, will have basically a 12.5 percent discount on everything that they buy.”
The Prime Minister explained that while the measure offers broad relief, certain goods and services are excluded. These include alcohol and tobacco, motor vehicles, gasoline, LPG and diesel, guns and ammunition, cigarettes and services not ordinarily zero rated. He noted that professional services, legal fees, restaurant supplies, rent, lottery and raffle tickets, phone plans, internet and cable services, as well as tourism related services and imports, will not qualify for the VAT holiday.
Pierre also addressed concerns about pricing, stressing that the government does not control the cost of goods entering the country.
“We are price takers. We do not control the price outside,” he said. “When goods come here, the cost comprises several things, the purchase price, shipping, insurance and other charges. When you apply import duties and the VAT, and then the merchant adds a markup, there are several things you could not control.”
Senior Minister Stephenson King said the initiative allows citizens to tangibly feel the benefit of government policy.
“Because sometimes though our people appreciate what is being done for them, sometimes they need to feel it, they need to touch it,” King stated. “They need to know exactly what it is, put value to it when they get to that cash register to say, you have saved 60 cents, you have saved 80 cents, you have saved $2 or $10.”
Minister for Economic Development Wayne Girard described the amendment as small in scope but significant in impact.
“Before this House, Mr. Speaker, today is a modest amendment to the VAT Act, but one with significant economic, social and psychological impact,” he said. “A VAT free day delivers instant relief at the cash register. It means parents stretching a salary a little further. It means grandparents purchasing gifts without sacrificing necessities. It means working families feeling that this government understands the real pressures that they face.”
The Office of the Prime Minister noted that participation in the initiative is voluntary, with businesses required to register with the Inland Revenue Department to take part. Establishments that opt out will continue to charge VAT as required under the law.
With unanimous support from the Lower House, the government says the VAT free day is expected to drive heavy foot traffic into local businesses while helping families stretch their holiday budgets during one of the most expensive times of the year.