St Lucia Eyes Income Tax Cuts, After VAT Implementation

St Lucia Eyes Income Tax Cuts, After VAT Implementation: "The government of Saint Lucia has outlined new tax measures in its latest Budget to shift the tax burden from direct to indirect taxes.

The Budget contains four key fiscal measures, namely:

The introduction of a value-added tax (VAT);
A lowering of the tax burden under both the corporate and personal income tax regime;
An increase in fees for Alien’s Landholding Licenses; and
A reform of the Property Tax regime.
According to the government, it is proposed that the impact of the value-added tax - to be introduced from September 2012 - will be offset by a reduction in the corporate income tax rate, and by reduced taxes on earnings. The government suggested that the value-added tax will be largely revenue neutral, as it will offset the removal of a number of existing levies. However, some gains will be achieved by reduced tax collection costs, and a broadening of the tax base."

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