Saint Lucia’s Prime Minister and Minister for Finance, Hon. Philip J. Pierre, presented his 2025/2026 Budget Address on Thursday, April 24, reaffirming his government’s commitment to responsible governance and the well-being of the people.
In a Budget packed with social support measures and economic relief, Prime Minister Pierre made it clear: there will be no new taxes this year.
Among the key initiatives, temporary teachers will now receive their full salaries during the month of August—a move welcomed by educators across the island. Meanwhile, the government is stepping up support for students, with $250,000 allocated to ensure better access to feminine hygiene products in schools, and an increase in tuition assistance for nursing students at Sir Arthur Lewis Community College (SALCC). Nursing students will now benefit from rising tuition support each year, culminating in full tuition coverage by their final year.
Parents with young children will also get a helping hand. The tuition subsidy for students attending privately-owned preschools will double from $50 to $100, and subventions to these schools will rise from $2,500 to $3,000 per child.
In an effort to make education more affordable, the government will now pay for two additional Caribbean Examinations Council (CXC) subjects, bringing the total to four. Students who left school within the past year will also be eligible for this benefit.
Beyond education, the Budget brings significant relief for pensioners and government workers. Pension income will be tax-free starting January 1, 2025. Pensioners will also receive a one-time $600 payment in November 2025, and from July 1, NIC pensions will be adjusted based on the cost of living. Long-serving police officers, firemen, and correctional officers who are NIC contributors will also be newly eligible for pensions at age 55.
Economic measures were also part of the mix. The popular Tax Amnesty Program will be extended until May 2026, income tax deductible allowances will rise from $30,000 to $40,000 for the 2025 tax year, and airport service charges for regional travel will be cut in half from June to December. In addition, VAT will be removed from selected food items starting July 2026.
To encourage digital innovation, businesses investing in cybersecurity, AI tools, or ICT training can now claim up to $50,000 as a tax-deductible expense.
The Prime Minister emphasized that this Budget is about building a stronger, fairer Saint Lucia, with policies tailored to uplift citizens at every stage of life.
“Our government continues to make decisions that put people first,” Pierre said. “We are building a Saint Lucia where opportunity, security, and dignity are available to everyone.”
