Dominica extends VAT and import duty exemptions to ease cost-of-living pressures

The Parliament of Dominica has approved the extension of the Value Added Tax (VAT) exemption along with the import duty waivers on Friday, April 10, 2026. Later, a list consisting of all the essential goods on which the Value Added Tax and Import duty will not be applicable was released.

The list has been divided into three categories. The first list contains the list of items which are exempted from the application of the Value Added Tax. The list contains items such as milk, flour, rice, sugar, infant formula, salted herrings, onions, garlic, lentils, oats, cornmeal, cream of wheat, tomato ketchup, toilet paper, sanitary napkins and other essential products. A total of 31 items are listed which are now free from the application of Value Added Tax.

The Second list consists of the items which are free from the levy of Import Duty. Items which come under this list include chicken wings, milk, butter, garlic, onion, cheddar cheese, lentils, green tea, black tea, flour, rice, oats, cooking oil, sugar, pasta and many more. A total of 40 items are listed which are free from the application of Import Duty.

The third and the final list contains all the items which are exempt from the application of both the Value Added Tax along with Import Duty. Items which come under this list include milk, sugar, rice, flour, orange juice, laundry detergent, canned corn beef, canned tuna, cereals like wheat, bran etc. and many more. A total of 31 items are listed which are free from the application of Value Added Tax and Import Duty.

The measure will remain in place until the end of July, 2026 as a fragment of a targeted response to rising global economic pressures. These measures will help Dominicans to lower down the pressure of rise in cost of living.

Prime Minister Roosevelt Skerrit said, “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.”

The Prime Minister also pointed towards the ongoing geopolitical tensions along with their effects in terms of increased oil prices, disrupted supply chains and higher transportation costs. He explained that these external shocks directly impact Dominica with higher prices for food, fuel and other essential goods.

Minister of Finance, Dr. Irving McIntyre mentioned that the import duty exemption on the goods has also been extended for the same four month period ending 31st July, 2026.

The Prime Minister further said, “In extending this relief, we reaffirm our commitment to stand with the people, not only in times of stability, but more importantly, in times of uncertainty.”