Bahamas: Food items to be sold cheaper after PM Davis’ recent announcement

Bahamas Prime Minister Philip Davis has announced to reduce VAT on all food items from 5 percent to 10 percent from 1 April onwards. He added that with the reduction the government aims to bring the economy to stable and secure footing.   

PM Davis added that the VAT reductions will provide major relief to the consumers in financial terms. He added that this five percent reduction will apply to all food in stores including fresh fruits and vegetables, lunch snacks, baby food and frozen foods.  

He made the announcement while giving a national address on Wednesday night and highlighted that the reduction will not apply to prepared foods in the deli. PM Davis added that the rate reduction will also apply to the importation of all food items and the date of April 1 will allow merchants and food stores to make the adjustments.  

Discussing the Bahamas economy from three years ago, Prime Minister Philip Davis said, “it was in shambles, and the finances were in freefall while the hospitals, schools and communities were in deep crisis”.  

He also emphasised the government’s efforts in puling the nation back from the fiscal brink.  

PM Davis who has been the Prime Minister since 2021, said his Progressive Labour Party administration fought to get the nation removed from the blacklist and mentioned that they brought back old jobs and created new ones.  

Furthermore, Philip Davis cited the high cost of living as one of the most stubborn problems of the country and explained that VAT is not the cause of the high price of food but for the ones having the tightest disposable income, reduction of VAT by 50 percent will surely make a huge difference.  

He further reiterated his administration’s commitment towards working to lower the cost of energy, improve the energy infrastructure and provide affordable housing as well as healthcare.