Tax concessions on mild hybrid vehicles terminated January 1st, 2026

Published on February 9, 2026

The Government of Saint Lucia has issued a clarification on tax concessions for sustainable fuel vehicles, focusing on the distinction between hybrid and mild hybrid models.

Hybrid vehicles, which can operate fully on electric power and use two or more energy sources to propel themselves, qualify for tax concessions.

In contrast, mild hybrids, which rely solely on their internal combustion engine and use electric components only to assist fuel efficiency, do not meet the legal requirements for concessions.

Public Utilities officer Mr. Kurt Inglis explained that all mild hybrid vehicles ordered before January 1st, 2026, will receive concessions as part of a transitional adjustment period. After this date the standard tax rates for mild hybrid vehicles will apply.

Anyone purchasing a vehicle before January 1st, 2026, is asked to visit the Department of Energy on the ground floor of the Stanislas James building to finalise arrangements for the concessions.

You will need to submit your customs documents as well as a proof of purchase that indicates the date that the vehicle was purchased, or the date that the vehicle was paid for.

The proof of purchase cannot be a proforma invoice. It must be a receipt, a bank statement or information from a dealership indicating purchase of the vehicle.

For further guidance, stakeholders are encouraged to contact the Energy Division at 468-6363.