Saint Lucia prime Minister and Minister for Finance, Hon. Philip J. Pierre Prime Minister of St. Lucia Philip J Pierre (photo credit: Associates Times)

Saint Lucian shoppers will enjoy significant savings just ahead of Christmas after Parliament approved an amendment to the Value Added Tax (VAT) Act, paving the way for the country’s first-ever VAT-Free shopping day.

The amendment was approved unanimously during the first sitting of the Thirteenth Session of Parliament on December 16, following a motion tabled by Prime Minister Philip J. Pierre. The move allows for a VAT-Free Day on December 22, 2025.

With the standard VAT rate set at 12.5%, participating businesses will sell eligible goods at least 12.5% cheaper on that day, providing immediate relief to consumers and helping families stretch their holiday budgets.

Government officials say the initiative is also expected to benefit businesses by boosting foot traffic, increasing sales, and stimulating overall commercial activity during the peak holiday shopping period.

Participation in the VAT-Free Day is voluntary. Businesses wishing to take part must register with the Inland Revenue Department (IRD). Those that do not participate will continue to charge and remit VAT in accordance with existing law.

The government has thanked members of the private sector for their cooperation, noting that the initiative is intended to balance direct consumer savings with stronger economic activity across the country.