The new system, Dr. Anthony said, will give rise to several benefits including a better perception of the island as it pertains to the ease of doing business.

The Government of Saint Lucia plans to introduce a deferred tax system for capital goods.

The Value Added Tax Act states that the Comptroller may exempt capital goods for importers who meet certain requirements, as a result, under a deferred tax payment system, registered and existing businesses can request deferred payment to eliminate  possible cash flow problems resulting from investments in large capital goods.

"Taxpayers who meet the required conditions will be allowed to defer payment of VAT on the importation of selected goods. Accounting for the VAT will be a book entry, and as such no cash payment is required,” Prime Minister Hon. Dr. Kenny Anthony explained.

The new system, he said, will give rise to several benefits including improved cash flow as companies will not be required to pay VAT upfront upon importation of capital goods; lower costs for financing these capital goods; and a better perception of the island as it pertains to the “ease of doing business.”