The Prime Minister, Hon. Philip J. Pierre is in receipt of an Open Letter from the Leader of the Opposition calling for the suspension of the 2.5%levy for health and citizen security. At the appropriate time, the Prime Minister will address in full, the contents of this missive by the Leader of the Opposition but wishes to reiterate the facts on the 2.5% Health and Security Levy.
We are encouraged that the Leader of the Opposition has acknowledged the growth achievements of this administration by highlighting the positive developments in the economy, however, it is important to note that sustaining this growth requires prudent fiscal management and diversified revenue sources. The introduction of the 2.5% levy is one such measure that aims to support our economy and provide necessary funding for essential services, namely health and security as the Prime Minister identified in his 2023/2024 budget address.
We once again take this opportunity to state that the 2.5% health and security levy will not be on food items, medication, medical equipment, security equipment, and selected building material. Therefore, we do not expect there to be an increase in the price of these items at their point of purchase locally unless prices increase overseas. All items which traditionally did not attract taxes will continue in this regard; therefore, the levy will not affect the price of petroleum products, zero-rated or VAT-exempt products, utilities, or tourism products. This government has further expanded the zero-rated or VAT-exempt basket of goods. Additionally, VAT will be removed on the following building supplies for two years: plywood, lumber, steel, cement, and galvanise. This strategic policy by the government has been well received by the public and will drive demand in the construction industry. This new economic activity will be supported by the construction of four [4] hotels accounting for investment of XCD 341.6 million; a feat which eluded the administration of now Leader of the Opposition, Allen Chastanet.
The health and security levy is a necessary measure to ensure that the burden of economic recovery is shared equitably among all stakeholders. It is not a standalone solution to addressing the burdensome debt that this administration now has to honour, but part of a comprehensive approach to strengthen our economy and improve the lives of our citizens. The government will continue to roll out its Universal Health Care programme and improve the quality of health services at our institutions. The police will continue to benefit from the reinstatement of the Training Vote, equipment, and vehicles to assist in citizen security.
The government remains committed to prudent fiscal management, sustainable growth, and the well-being of all citizens. We welcome constructive input and collaboration from the Opposition to ensure the best outcomes for our country.
Photo: Google Images
