INCREASING VAT DURING RISING INFLATION

[18th August 2022] - ECCB Governor Timothy Antoine's recommendation that Saint Lucia consider raising the value-added tax has been the subject of much discussion recently . Given that inflation is on the rise, is it feasible to raise the VAT, and if so, what are the benefits and/or drawbacks of doing so?

Our news team spoke to Accountant Richard Peterkin to gauge his views on the advantages and disadvantages of increasing the country’s value added tax during a period when inflation is on the rise.