(MENAFN- Caribbean News Now) By Melanius Alphonse
Caribbean News Now associate managing editor
CASTRIES, St Lucia – Prime minister and minister for finance Allen Chastanet's budget address for financial year 2019/2020, acknowledged that the Saint Lucia government has commenced the necessary review whilst engaging the European Union (EU) and code of conduct group, in its efforts to meet international standards on tax transparency and the exchange of information which have been set, not only by the EU but also by the Global Forum and the Economic Cooperation and Development (OECD).
'Government will continue its efforts in ensuring that Saint Lucia remains compliant with the requirements for tax transparency and exchange of information as we foster a vibrant economy and improve the quality of life for our people. Saint Lucia has already made the requisite commitment, as such, we are not on EU's blacklist, although we remain on the greylist until the next assessment,' Chastanet said.
'Saint Lucia can ill afford to be on the wrong side of these international tax requirements. Compliance on international tax matters affects the investment climate, the availability of funding and the general perception of a jurisdiction. As a small island developing state, we need to attract foreign direct investment and obtain funding in order to achieve the level of economic growth and development, which we need,' he continued.
In addition to the commitments made by the government of Saint Lucia to the EU and OECD, several measures of global activity influence policy and government legislative agenda.
This requires variable amendments and changes to legislation to bring Saint Lucia in full compliance by the end of 2019, identified the International Business Companies Act, the International Trust Act and the Free Trade Zone Act for amendments.
The government of Saint Lucia's suite of amendments and new legislation goes further, as proposed in the throne speech delivered by the governor general, Sir Emmanuel Neville Cenac:
"Finalize the cooperative societies bill, to facilitate the growth of cooperative societies, and recognise the financial services regulatory authority as the regulator for financial cooperatives.
"A credit reporting bill, to support the growth of the Eastern Caribbean Currency Union (ECCU) credit reporting system and the development and operation of the credit bureau within the single financial and economic space.
"The security interests in movable property bill to provide for small and medium enterprises to access finance, in instances where they lack traditional collateral.
"A free zone (amendment) bill will be enacted, with a view to improving governance operations in free zones and assist in meeting international tax transparency requirements.
"Government also intends to amend the existing trade licence act, in our bid to regulate, more effectively, those non-nationals who are desirous of trading in Saint Lucia.
"The fiscal incentives (amendment) bill is intended to expand incentives afforded to local businesses as a means of spurring industry and investment.
"The existing financial (administration) act cap 15.01 will be repealed, and a new public financial management act introduced in its stead.
"The public procurement and asset disposal act no19 of 2015 will be brought into force, accompanied by requisite regulations as well as structural changes within the department of finance.
"A debt management strategy… will be governed by a public debt bill which will promote transparency and accountability in debt management.
"Legislation is also required to ensure that discretion attends the management of the national economic fund established under the citizenship by investment act no 14 of 2015. To this end, a Saint Lucia national economic fund bill is proposed, which will deal with matters of administration, financial transactions and reporting obligations."
Equally important is the additional exposure Saint Lucia is subject to, in the event of default on the requirements and timelines.
'Implementation has not kept pace with policy, and this has led to disappointment in various segments of our society. This problem has become as frustrating for us as it has for many Saint Lucians. We have started, but the pace is about to quicken,' Chastanet said.
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