St. Lucia government to pay out millions in outstanding tax refunds

The St. Lucia government has revealed it will be paying out an estimated EC$20 million (US$7.4 million) in outstanding tax refunds dating back to 2015.

A government statement said that the Inland Revenue Department (IRD) has received the funding for onward disbursement to eligible recipients commencing this month and up to the end of the financial year in March 2024.

“The IRD is expected to payout nearly EC$10 million (US$3.7 million) during the month of December 2023. The remaining EC$10 million will be disbursed by the IRD during the first quarter of 2024,” the statement said.

It said as a result, it is anticipated that by the end of March next year, the government would have paid out an estimated EC$40 million (US$14.8 million) in tax refunds since July 2021.

“The government’s EC$20 million (US$7.4 million) injection will accelerate the tax refund process and ensure thousands of St. Lucians receive their outstanding tax refunds. This intervention is timely as it puts money back in the pockets of thousands of St Lucians for the holiday season and beyond,” the statement added.

Meanwhile, Cabinet has agreed that employees of the state-owned Water and Sewerage Company Incorporated (WASCO) will be exempt from the payment of income taxes in lieu of retroactive pay.

The government said that the income tax exemption will cover a 5-year pay period from January 2019 to June 2023.

“Another approved exemption will extend the waiver for residential property tax by an additional year. The Ministry of Finance said the waiver will improve financial prospects for many families, some of which are still in recovery due to challenges posed by the post-COVID-19 economy and compounded global inflation.” -(CMC)