Dominica extends VAT relief on essential good until July 2026 to ease cost of living

Dominica: In a significant development, the Government of Dominica has secured parliamentary approval to extend Value Added Tax (VAT) relief and import duty waivers on essential goods in a move which is aimed at easing the rising cost of living for citizens.

The extension was approved during a sitting of Parliament on April 10, 2026 and it will keep the relief measures in place until the end of July 2026, as confirmed by Prime Minister Dr. Roosevelt Skerrit. He said that the decision forms part of the ongoing efforts of the government to cushion the impact of global economic pressures such as rising food prices which are driven by international developments.

The VAT exemption and duty waivers were initially introduced in the 2025-2026 national budget to provide direct support to households, especially amid increasing import costs.

According to the Prime Minister, this extension is set to benefit a wide cross-section of society such as families, small businesses as well as the hospitality sector by keeping essential goods more affordable.

He noted that while Dominica cannot control external global shocks, the government remains committed to implementing policies that protect citizens and strengthen economic resilience. The administration has also linked the measure to its broader strategy of improving national self-sufficiency with continued investments in agriculture, renewable energy and food production systems.

“By removing these taxes on essential goods, we are easing the cost of living, protecting household incomes and ensuring that basic necessities remain within reach,” said the PM while adding that this is what responsible governance requires, this is what caring, compassionate, competent leadership demands and this is what the people of this country deserves.

He further noted that in extending this relief, his administration reaffirms its commitment to stand with the people not only in times of stability but more importantly in times of uncertainty. “The history of Dominica will show that there has been no government in our country that has been more people, more compassionate, more caring and more empathetic than this government that I have the honour to lead,” said the Dominican leader.

Officials confirmed that the relief measures will be reviewed again during the next budget cycle to determine whether further extensions are necessary.

The move comes as governments across the region continue to introduce fiscal measures to mitigate the effects of inflation and global supply chain pressures on everyday consumers.