Dominica has extended VAT and import-duty exemptions on essential food items until September 30, 2026, to help ease the cost of living.
Dominica: The Government of Dominica has extended Value Added Tax (VAT) exemptions and import-duty waivers on a range of essential food items as part of its greater efforts to continue providing financial relief to many households in Dominica. The VAT and Duty-Free relief measures will now remain in effect until September 30, 2026, extending the previous July 31, 2026, deadline by an additional two months.
The extension was announced by the Minister of Finance, Economic Development, Climate Resilience and Social Security, Dr. Irving McIntyre, on Tuesday, August 4, 2026, as he presented the National Budget for the 2026/2027 fiscal year in Parliament.
Minister Irving McIntyre shared that the Government had earlier made the decision to remove VAT and import-duty as a response to ongoing global economic challenges, including rising shipping costs and supply chain disruptions which had placed high pressure on consumers due to the rise in prices on essential goods.
He shared that the Government believes it is necessary to maintain the policy to easing the cost of living for two more months as external economic pressures continue to affect the country, citing Dominica's dependence on imports.
Many of these external pressures remain. Government therefore believes it is prudent to continue providing this important relief to households, Minster Irving McIntyre said.
The Minister emphasised that it is the responsibility of every importer, wholesaler and retailer to ensure the reduced taxes are reflected in the prices of goods and that savings are passed on to consumers.
Let there be no misunderstanding: a concession granted by the State must not be converted into a larger private profit margin. Relief at the port becomes household relief only when it is reflected fairly in the shelf price. We will closely monitor prices to ensure that the intended savings reach our families, stressed the Minister of Finance.
The Government reaffirmed its commitment to protecting the citizens’ purchasing power and supporting the cost of living in the country, sharing that it will continue to closely monitor the prices to also ensure that the benefits reach the citizens of Dominica.