SMA welcomes Government’s lifeline Initiative.
The St. Lucia manufacturers Association wishes to place on record its sincere gratitude and appreciation to the Government of St. Lucia for the recent pronouncement, by Prime Minister Allen Chastanet, of the exemption of VAT payment at the ports for Local Manufacturers. This long awaited answer to our pleas could not have come at a more opportune time, as our Association has been consistently & relentlessly pleading for this vital measure of relief, on behalf of its members, from the inception of VAT in October 2012. VAT at the ports imposes a significant cash flow liability on manufacturers, particularly small manufacturers, who in attempting to benefit from economies of scale in order to be competitive are compelled to purchase significant amounts of raw materials, much of which remains in stock for periods in excess of a year, thus tying up large cash resources in inventory which can adversely affect the viability of their businesses by inducing strangulation and suffocation and, which may have contributed to the untimely demise of a number of businesses. Our Association recognizes the financial constraints which Government are faced with and, are pleased that this administration has listened to the cries of manufacturers and has acceded to our relentless pleas by allowing us the opportunity to pay VAT when the goods are sold instead of on importation. Our members can assure the Government and people of St. Lucia that the benefits of this lifeline gesture will be reinvested into rescuing, improvement and expansion of their businesses and the ultimate achievement of some level of economies of scale, so critical to their viability and survival in this rapidly changing, hostile global environment. P O Box MF7177, Castries, St. Lucia, Tel: 453-7805 Fax 453 7806 - Email: email@example.com - Website: madeinstlucia.com