VAT and Customs Duties Removal Delivering Real Savings for Consumers-PM Skerrit
Prime Minister Roosevelt Skerrit says a decision to remove customs duties and Value Added Tax (VAT) on a wide range of essential food items is delivering measurable relief to households, easing cost-of-living pressures amid ongoing global inflation.
The policy measure, announced in the 2025–2026 National Budget, was introduced as a practical intervention to protect families, particularly low-income households, from rising food prices.
Speaking at his End of Year Press Conference on Monday, Prime Minister Skerrit said the decision reflected a commitment to people-centred governance, ensuring that no Dominican is forced to choose between putting food on the table and meeting other basic needs.
“I am pleased to report that these reductions have, across the board, had a positive impact on the purchasing power of families and their overall ability to meet daily expenses,” he stated.
To evaluate the effectiveness of the policy, the Division of Trade conducted a comprehensive Market Surveillance Exercise both before and after the removal of VAT and import duties on selected consumer goods.
The first assessment was conducted prior to October 1, 2025, to establish baseline retail prices. A second exercise was concluded on December 12, 2025, to measure changes following the implementation of the exemptions.
The Division focused on the “Big Six”-Dominica’s largest importers and distributors whose pricing practices significantly influence retail prices across the island. These include J. Astaphan and Co. Ltd., H.H.V. Whitchurch & Co. Ltd., Green’s Supermarket, Fine Foods, S-Mart and ACS.
According to the findings, reductions were observed with the majority of products and brands monitored in all supermarkets surveyed.
Based on a representative subset of seven products, approximately 23.3 per cent of the overall list, significant price decreases were recorded. These include luncheon meat, with reductions of up to 13.36 per cent; corned beef, up to 13.07 per cent; breakfast cereals, up to 12.3 per cent; unsweetened biscuits, up to 18.89 per cent; orange juice, up to 42.28 per cent; toothpaste, up to 27.98 per cent; and tomato ketchup, up to 24.3 per cent.
“This is a representative sample, but these results confirm that the VAT and import duty exemptions are translating into real, measurable savings for consumers at the checkout. The exercise provides strong evidence that the policy intervention is working as intended, easing cost-of-living pressures and delivering tangible benefits to households across Dominica. This is what we mean by People First,” Prime Minister Skerrit said.
