Dr. Kenny Anthony, former Prime Minister of St. Lucia, is against plans to introduce a value added tax (VAT), saying it was oppressive and undesirable for workers and the poor.

Anthony's successor, Prime Minister Sir John Compton, last Thursday announced that the consumption tax would be introduced within a year, saying it was necessary as a much-needed revenue earner for St. Lucia as he presented his administration's EC$1.2 billion (US$444 million) budget.

Sir John said while other Organisation of Eastern Caribbean States (OECS) countries had either implemented or were about to introduce the VAT system on the advice of the Eastern Caribbean Monetary Council, the former administration did not have the political will to do so ahead of the December 2006 general election.

But Anthony, in his contribution to the budget debate, said he did not consider the tax necessary.

"We were never persuaded that VAT was the wisest choice, because we believe that it is potentially an oppressive tax. It is oppressive to the poor, it is oppressive to workers," said Anthony.

"The fact is that the cost of living in St. Lucia is one of the lowest if not the lowest in the OECS. That is why they come and shop here."

Food hike looms

Anthony said that in every country where VAT had been introduced, it was accompanied by an increase in food prices.

"When the Minister of Finance tells us that he is going to introduce VAT that is revenue neutral, don't be so disingenuous. All of us know the sole reason why you have to introduce VAT is not only to spread the burden but most importantly to raise additional revenue. It is naked taxation," he said.

- CMC