The government of Saint Lucia has approved a major extension of its tax amnesty program, giving taxpayers until December 2027 to settle outstanding tax liabilities while benefiting from a full waiver of interest and penalties on eligible taxes, Prime Minister Hon. Philip J. Pierre announced Monday. 

Speaking at his weekly pre-Cabinet press briefing, Pierre described the measure as one of the most generous tax relief initiatives ever offered by a Saint Lucian administration.

“What is important to note is that all interest and penalties due on taxes up to December 2025 will be waived,” Pierre said.

The latest extension builds on a tax amnesty program first introduced by the Pierre administration and subsequently extended several times. The current amnesty, which was scheduled to expire in May 2026, already provides taxpayers with a 100 per cent waiver of penalties and interest on outstanding tax obligations for earlier tax periods. Government officials have previously stated that the program applies to all categories of taxes, including Value Added Tax (VAT), income tax, property tax and other statutory obligations.

Pierre said the expanded amnesty will continue to cover all forms of taxation, including VAT collected by businesses on behalf of the government but not yet remitted.

“VAT collected by businesses ought to be paid immediately to the government,” he said. “We understand sometimes there are going to be issues, so we will be waiving these interests and penalties.”

The prime minister noted that the administration has pursued similar tax-relief measures since Budget 2023 as part of a broader strategy to encourage compliance while easing financial pressures on businesses and individuals.

The Cabinet also approved the continuation of several consumer-relief initiatives aimed at shielding households from higher living costs.

Among the measures being extended are the zero-rating and VAT exemptions on a range of grocery items, a policy first introduced as part of the government’s response to global inflation and rising food import costs. Government officials have previously said the concessions were intended to reduce the cost of dozens of essential food products for consumers.

Pierre said the decision comes as international developments continue to place upward pressure on prices, particularly through higher energy costs that affect transportation, food production and imports.

The government will also continue VAT concessions on selected building materials for an additional two years. The measure, first implemented in 2023, removed VAT from a range of construction inputs, including lumber, cement, steel, and galvanised, with the stated objective of lowering construction costs and stimulating economic activity.

In addition, the administration will maintain the waiver of service charges on food items.

Pierre said the combined measures are intended to cushion consumers from external economic shocks while supporting continued growth in Saint Lucia’s construction sector, which has been among the strongest-performing segments of the economy in recent years.

The Cabinet decisions are expected to be reflected in the appropriate legislative and fiscal measures in the coming months.