United Workers Party leader Allen Chastenet has voiced strong objections to Government's decision to exempt developers of the Rodney Bay City Centre project from the payment of the Health and Citizen Security Levy.In a letter dated July 17 to Prime Minister Philip J. Pierre, Chastenet argued that if the
levy can be waived for developers, then all St Lucian citizens should benefit likewise.According to Chastanet, the decision appears to be based on Instrument No. 108 of 2024, which granted a zero per cent levy to consultants, contractors, sub-contractors, suppliers, and utility companies working with Rodney Bay City Center Ltd. This exemption, according to him, not only lacks legal backing but also undermines the equitable application of the Health and Citizen Security Levy Act, which imposes a 2.5 per cent tax on various goods and services for a two-year period.Chastenet's letter highlighted concerns that the levy, originally intended to bolster the health and security sectors, was instead implemented to meet obligations tied to international loans, contradicting earlier government assurances.He asserts that the levy has exacerbated economic challenges, especially inflation, and has disproportionately affected vulnerable parts of society by increasing the costs of essential goods and services."You promised that the levy would not impact the cost of food, yet time has proven otherwise, as essential services like transportation and business services were subject to the levy. These additional costs were predictably passed on to the consumer, adding to the financial burden of those already struggling to make ends meet. Higher costs for essential goods and services reduce disposable incomes, stifle consumer spending, and ultimately deter potential investors who view such policies as an unviable increase in cost. It also severely impacts existing developers and investors who made investments with certain fixed costs and taxes in mind. Your recent proposed exemption of the levy for goods and services to be supplied for the Rodney Bay City Center developer is therefore understood but is in fact unlawful and manifestly unfair."The opposition leader underscored broader discontent with the government's economic policies, accusing the administration of creating unnecessary burdens for ordinary citizens while granting preferential treatment to developers.He urged immediate action to rescind what he termed as the "selective exemption", emphasizing the need for equitable relief for all St. Lucians affected by the levy.St Lucia Times has reached out to the Prime Minister's office for comment.
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