The VAT rate in the tourism industry is to be pegged at eight per cent, he said.
Details of the September 1 introduction of VAT were announced during government’s policy statement on the 2012/2013 Appropriation Bill currently being debated in Parliament.
While the announcement has put an end to rampant speculation here about level of VAT, it has sparked further concerns about the tax’s implementation and effective collection from the various businesses.
St Lucia is the last remaining Eastern Caribbean nation to implement the VAT. But despite being a latecomer to the tax, the country has the opportunity to learn from the lessons of counterpart nations and minimize teething troubles.