Strengthening Tax Policy for Climate-Resilient Growth in Saint Lucia

Overview & Synopsis

This report examines Saint Lucia’s tax system and identifies key tax policy reforms to enhance domestic resource mobilization, improve the efficiency and fairness of the tax system, and foster green growth. It identifies both short- and long-term reforms2 that aim to significantly increase revenue by approximately 4 percentage points (pp) of GDP, reduce economic distortions, accelerate growth, establish a more progressive tax framework, and foster an energy transition that improves environmental performance. The report concludes that there is significant potential to broaden Saint Lucia’s tax base, especially regarding income taxation.