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CMC – The St. Lucia government says it will no longer deduct income tax from government contracts valued at EC$10,000 (One EC dollar=US$0.37 cents) or less.
“This amendment to the Income Tax Act is actually an amendment to emphasise and re-emphasise the philosophical position of the government of St. Lucia,” Prime Minister Phillip J Pierre told Parliament.
He told legislators that as it now exists, “any contractor who gets a EC$10,000 contract with the government when he goes to the Treasury Department 10 per cent is deducted from his earnings.”
“Contractors complain all the time that even though they get the job they get nothing from the contract because they are charged 10 per cent by the government even before they pay their workers.”
“So we decided we would exempt payments of EC$10,000 and less from the 10 per cent deduction,” Pierre said, adding “it is another move by the government to put more money in the people of this country”.
He said it also highlights the fact that there must be opportunity for all “and those who receive less are not unduly disadvantaged”.
