Speaking to reporters outside Parliament on Thursday, Pierre explained that international factors, such as rising freight rates and global inflation, are beyond the control of small island economies like Saint Lucia.

However, he emphasised that his administration is using fiscal policy tools to soften the impact on local households.

“We do not control the cost. We control the price,” the Prime Minister said. “Look at the cost of freight. The businessman will tell you that freight costs have increased substantially from what it was two months ago. But what we control is the price.”

Pierre explained his administration’s series of policy interventions aimed at reducing prices for everyday goods, including the removal of the 12.5% Value Added Tax (VAT) on over 70 essential items, and the elimination of import duties and service charges on selected “basic commodities” consumed by the especially poor and marginalised.

He explained that even if the global cost of these goods increases, the absence of VAT means consumers will still pay 12.5% less than they would have previously.

“We expect a decrease because the VAT on these items will not be there,” Pierre said, noting that the relief applies to products sourced from both within the region and externally.

He added that the government has already removed import duties on goods acquired under CARICOM’s irrigation programs, ensuring that price savings are passed on to consumers.

The Prime Minister further emphasised that monitoring and enforcement would be key to the success of the initiative: “We’re going to be monitoring it to ensure that the government’s legislative agenda is carried on and the consumer benefits.”

Pierre’s comments come amid heightened public scrutiny over rising grocery bills and inflationary pressures, and follow recent parliamentary approval for new VAT exemptions aimed at protecting vulnerable households.

The government says it will continue to work closely with the private sector and consumer affairs officials to ensure compliance and transparency in pricing as the policy takes effect.