17/02/17

St Lucia Planning Further Tax Cuts

The International Monetary Fund (IMF) has warned Saint Lucia of the impact of recent tax reforms, which it says may impact tourist numbers and dent economic growth, reports Tax News.

The IMF welcomed the new administration's plans to lower the tax burden, enhance the efficiency of the tax system, and cut tax compliance costs. However, the IMF said that the decision to cut the value-added tax rate to 12.5 percent from 15 percent from February 1 makes the territory vulnerable to fiscal shocks, and the new airport tax may impact visitor numbers.

In its annual report for the territory, the IMF said the territory should focus on lowering barriers to international trade and broadening the tax base.