IRD to implement health and citizen security levy

27/07/2023

By IRD

The Government of Saint Lucia is set to introduce a Health and Citizen Security Levy, for a two-year period commencing Aug. 2, 2023. This levy will be payable to existing VAT registrants who are responsible to remit to the Comptroller of Inland Revenue.

The Health and Citizen Security Levy will be implemented with the following rates:

On Services: a 2.5% levy will be applied on the final service price for services provided within Saint Lucia, including applicable taxes on the supply of the service.
On Goods: a 2.5% levy will be added to the cost, insurance, and freight value of imported goods. This levy will be payable to the Comptroller of Customs on imported goods.

It is important to note that certain goods and services will be exempted in accordance with the Health and Citizen Security Levy Act No. 16 of 2023.

Goods: The levy is applicable only to imported goods, however, there will be no levy applied to any good that is zero rated or exempt in accordance with the VAT Act. Additionally, the levy will not apply to goods provided by hotels and other providers in the tourism sector.

Services: There shall be no levy on any service that is exempt or zero rated in accordance with the VAT Act; or, is a service provided by hotels and other providers in the tourism sector.

As the implementation date approaches, the Government will be conducting informational campaigns to raise awareness and ensure a smooth transition for businesses and taxpayers. Additionally, further details and guidelines regarding the Health and Citizen Security Levy will be communicated through relevant government channels and official announcements.

The Government of Saint Lucia remains committed to fostering an environment conducive to economic growth and prosperity, and the introduction of the Health and Citizen Security Levy is a significant measure in this direction. For further information, contact the IRD at 1(758) 468-4788/4714.

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