Chastanet Criticises Record Budget, Accuses Government of Over-Taxation

Opposition Leader Allen Chastanet has launched a scathing critique of the government’s record-setting $2.06 billion budget, accusing Prime Minister Philip J. Pierre’s administration of excessive taxation while failing to improve public services.

“The only record this budget is achieving is in taxes,” Chastanet said ahead of the debate on the 2025/2026 Estimates of Revenue and Expenditure on Thursday, two days after Pierre’s presentation to the House of Assembly. “If we look back from 2019, there’s been an increase of almost $300 million in tax revenue.”

He pointed to three primary sources of the increased revenue: a surge in excise taxes driven by record-high gas prices, the controversial 2.5 per cent health and security levy, and heightened taxation on personal and corporate income. 

“That money is coming from the pockets of the people of this country,” Chastanet asserted. “This government has proven once again that the only thing they know how to do is tax people.”

The opposition leader argued that the government’s spending had not translated into tangible improvements in key areas such as healthcare, infrastructure, and crime reduction. Furthermore, he charged, the government’s expenditure on healthcare and security has remained proportionally unchanged from previous administrations, despite increased revenues. 

Chastanet also revisited concerns about the administration’s handling of the Citizenship by Investment Programme (CIP), drawing attention to recent regulatory actions in Grenada and St Kitts. He pointed to recommendations in an International Monetary Fund (IMF) report calling for an overhaul of Saint Lucia’s CIP and accused the administration of ignoring the advice. 

Chastanet also speculated that the Pierre administration may be holding off on new tax measures until after the next general election. 

The IMF has recommended an increase in the Value Added Tax (VAT), and although Prime Minister Pierre has so far dismissed the suggestion, Chastanet warned that it will happen if the Saint Lucia Labour Party (SLP) is returned to office.

“If they win…I can assure you that VAT will be increased from 12.5 per cent to 17.5 cent,” he said.

Chastanet, who was expected to be the final speaker in the debate on Friday, vowed to hold the government accountable. 

“We’re seeing that the healthcare has depleted, our roads have never been worse, the water situation in this country is a catastrophe, there’s been no new development with the ports, HIA [Hewanorra International Airport] has not changed and so it is very difficult for anyone to have confidence in this government. And that’s what I intend to bring and to hold this government accountable to – for the promises they made and what they have not delivered,” he insisted.

That did not materialise, however, as Chastanet did not contribute to the debate. Speaking outside of Parliament, the opposition leader charged that although he was ready and willing to speak, Prime Minister Pierre had prematurely closed the debate. 

However, Pierre told the House of Assembly that Chastanet had ample time to reply. He contended that the opposition leader responds to the prime minister first when the debate begins.