CASTRIES, St. Lucia, CMC – As St. Lucians await the presentation of the 2014-15 national budget, providers within the tourism sector , will from this month, pay a 10 per cent Value Added Tax (VAT) on some services initially exempted from the fiscal measure.

Government introduced the VAT in October 2012 and St Lucia became the last member state in the Caribbean Community (CARICOM) single market to introduce the  tax that replaced a raft of taxes and duties. St Lucia’s VAT is to be levied at 15 per cent on goods and services and at eight per cent in hotels.

According to a VAT (Rate of Tax) amendment order issued by the government, the 10 per cent tax would be imposed on accommodation services by hotels and their supply of food and beverages as well as for services such as tours, excursions and rides with local aerial trams and zip lines; hair braiding and massages.