The implementation of the Value Tax System in St.Lucia has been delayed by one month. Instead of the September 1st target date, the tax will be introduced on October 1st 2012.
Prime Minister and Minister for Finance, Dr. Kenny Anthony made the announcement on Tuesday during the second reading of the VAT bill at the first sitting of the house of assembly since the budget presentation in May.
He says the purpose of the postponement is to prepare St.Lucians physiologically and otherwise for the tax system albeit the possible loss of revenue during the period.
Leader of the Opposition Stephenson King claims the announcement is testament to his contention more time is needed for the VAT office to crystallize issues in the
VAT bill, the administration of the tax regime and the wide ranging public education campaign. King backs calls allegedly made by members of the Chamber of Commerce for a six month implementation process.
He argues the intricacies of the system and meticulous accounting requires detailed planning.
But Prime Minister Dr. Kenny Anthony says despite some unease the private sector supports tax reform.
He says the Chamber’s anxieties have been addressed and the business community has been co-operating with the state on the implementation process.
The VAT bill which was passed in the House will be debated in the upper house at the next scheduled meeting of the Senate on July 10th 2012.
HTS
