The Pierre Administration’s new income tax policy will provide additional relief to Saint Lucians coping with higher food and consumer prices and the general increase in the cost of living as a result of external factors. The new tax policy takes effect on January 1, 2023 and will save taxpayers up to $14 million annually. The average effective income tax rate will decrease from 5.4% to 3.7%.
With the new tax cuts, private sector workers and also public servants in Grades 1 to 5 who earn up to $25,000 annually will pay no income tax. And, no Saint Lucian will pay taxes on the first $25, 000 earned annually.