Camillo Gonsalves: VAT-Free Day “Illegal” Without Parliamentary Approval

By Val Matthias. Updated 3:45 p.m., Monday, March 2, 2026, Atlantic Standard Time (GMT-4).


Former Finance Minister Camillo Gonsalves has declared that the VAT-Free Day introduced in St. Vincent and the Grenadines was illegal, arguing that Cabinet had no authority to suspend taxation without parliamentary approval. 

Speaking on the morning programme Good Morning Comrade, Gonsalves stressed that he was offering his personal view: “Everybody hear me on this, this is Camillo Gonsalves talking, this ain’t the Unity Labour Party, this ain’t Ralph Gonsalves.”

He explained that the VAT Act of St. Vincent and the Grenadines set out how VAT is to be charged and collected, and nowhere does it authorise Cabinet to declare a VAT-Free Day. “There is a law in St. Vincent and the Grenadines. It’s called the VAT Act nothing in the law authorises anybody to suspend the law,” he said.

Gonsalves argued that if the government wanted to fulfil its campaign promise of a VAT-Free Day, it should have amended the VAT Act in Parliament to give the Minister of Finance the power to temporarily suspend VAT on specified items. “If the law does not allow you to do something, you don’t break the law. You don’t ignore the law. You have the majority. Go to parliament, change the law,” he said. 

While acknowledging that many citizens welcomed the VAT-Free Day and enjoyed savings, he warned that bypassing Parliament undermines constitutional principles.“The cabinet happens in secret.

The parliament happens in public. There’s an understanding under our constitution that the power to tax resides in the parliament. The cabinet doesn’t have the power to tax,” he said. 

Gonsalves concluded that ignoring the law, even for a popular policy, sets a dangerous precedent: “Even if the outcome is politically desirable, ignoring the law is a bad start. We are a country of laws, and we can’t bypass them when it is convenient.”

Prime Minister Dr. Godwin Friday announced the country’s first VAT-Free Shopping Day on 19th December 2025, fulfilling a major campaign promise of the New Democratic Party (NDP). He described the initiative as a measure to provide relief to households during the Christmas season. 

According to government statements during the 2026 Estimates Debate, the December VAT-Free Day generated approximately EC$28 million in turnover. Ministers confirmed that the initiative will be repeated, with the next VAT-Free Day scheduled for August 2026, timed to coincide with back-to-school shopping. The exact date has not yet been announced. 

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