- The government of Saint Lucia may find it uncomfortable to outsource services and speed up public sector service reform.
- In the exuberance of Independence 47 lies the commitment to social, security, and economic sovereignty.
By Caribbean News Global 
CASTRIES, St Lucia – The government of Saint Lucia continues to comply with EU tax compliance, while on the domestic end, VAT compliance leans toward amnesty, and the Inland Revenue Department (IRD) continues to face challenges.
In February 2021, Saint Lucia was removed from the EU list of non-cooperative tax jurisdictions and has maintained its cooperative status through bi-annual reviews. Saint Lucia’s next scheduled review is expected in October 2026.
The Office of the Prime Minister (OPM) stated that reforms were implemented in close collaboration with international partners, substantive and structural, and in keeping with evolving global standards on tax fairness and transparency.
Inclusive of these are:
- The abolition of preferential tax regimes deemed potentially harmful, including elements of the former International Business Company framework and related offshore incentives.
- The modernisation of the corporate tax system through the introduction of a territorial regime, coupled with strict economic substance requirements to prevent artificial profit shifting.
- The enactment and strengthening of Economic Substance legislation to ensure that companies benefiting from tax provisions demonstrate real commercial presence and activity within Saint Lucia.
- The enhancement of transparency measures, including full participation in the OECD’s Common Reporting Standard for automatic exchange of financial account information and compliance with Global Forum standards on exchange of information upon request.
- Alignment with OECD Base Erosion and Profit Shifting (BEPS) minimum standards, including transfer pricing rules and anti-abuse measures.
On 17 February, 2026, EU finance ministers updated the EU list of non-cooperative tax jurisdictions, highlighting the European Union’s commitment to implement tax good governance standards to fight against tax fraud, evasion, and avoidance globally.
Saint Lucia’s legislative agenda to satisfy the EU list is a positive step towards standards on good tax governance. However, domestic compliance and reinforcement are not showing positive signs for the continued strengthening of the partnership.
The government-business reputation is currently not a reliable and cooperative financial partner, contributing copiously to national development and broader international efforts to reduce tax abuse.
According to the OPM: “The government views tax compliance not merely as a listing exercise, but as part of a broader strategy to protect correspondent banking relationships; safeguard access to international financial markets; support investor confidence; and promote sustainable economic growth.”
The EU list targets loopholes in tax good governance in third jurisdictions that enable tax abuse to flourish. Jurisdictions are assessed and monitored based on the criteria relating to tax transparency, fair taxation, and the G20/OECD minimum standards against Base Erosion and Profit Shifting (BEPS). These criteria echo internationally agreed standards as set by the Global Forum and the BEPS Inclusive Framework.
Commenting on Saint Lucia’s EU tax compliance, Prime Minister Philip J. Pierre, stated, in part, “Our removal from the EU lists was not incidental. It was the result of deliberate, responsible legislative action and sustained engagement. We remain firmly committed to transparency, fairness, and cooperation within the global financial system.”
The OPM added: “Saint Lucia continues to monitor developments in international tax policy, including evolving OECD and EU standards, to ensure ongoing compliance and policy coherence.”
Prosperity matters
In the exuberance of Independence 47, the commitment to social, security, and economic sovereignty matters. Fiscal consistency and stability spotlight domestic and international openness that cannot be hidden.
“Saint Lucia remains a low tax jurisdiction,” Enhancing Our Infrastructure for Securiy and Prosperity, adding, “ In conjunction with the review of the existing tax structure, to provide a more dynamic, transparent, and responsive Inland Revenue Department, one that is fully equipped to meet the needs of today and the challenges of tomorrow.”
The premise is such that action on the domestic end must achieve dedication to IRD-implementing robust tax standards and strengthening confidence in economic and regulatory frameworks, recognising that compliance is integrated in economic integration (budget) and national development.
Diminishing IRD – VAT returns may very well be limited in government contribution to the Sovereign Wealth Fund for future use in investments and the creation of generational wealth.
Compliance
Saint Lucia’s tax system is expected to “enhance taxpayers confidence” – “ keep pace with the demands of a modern economy while remaining resilient, effective, and efficient,” says Enhancing Our Infrastructure for Securiy and Prosperity.
At the current risk of domestic non-VAT compliance, the largest share of government revenue, the government of Saint Lucia may find it uncomfortable to outsource services and speed up public sector service reform. This would help to reduce bureaucratic costs, enhance collection reform and limit external exposure.
- “The government of Saint Lucia reaffirms its dedication to responsible fiscal governance and constructive international engagement, recognising that transparency and long-term economic resilience.” ~ OPM.
Many things matter
Hence, while leading the dance to international standards amid safeguards to economic sovereignty, it matters to enhance nationalism and policy efficiency.
Moreover, while the verge of being re-conquered might seem trivial, it matters that institutions, legislators and citizens actually improve outcomes, not acting as if nothing matters, and choosing to ignore what is conspicuous.
