Dominica: Government to extend VAT and import duty relief to ease cost of living

Dominica: Prime Minister Roosevelt Skerrit has officially announced that the government will return to the Parliament on 10th April, 2026 to seek approval to extend key fiscal measures aimed at easing the rising cost of food and essential goods.

PM Skerrit continues his efforts to shield Dominican families and businesses from the impact of rising global prices. The Prime Minister has taken a step forward to extend the VAT and import duty waivers on essential food items.

Dr. Skerrit said that while these challenges are beyond the governments’ control, however, the government will continue to act decisively to provide relief and strengthen our path toward greater self-reliance.

During the 2025/2026 Budget, the removal of import duties and the zero rating of select items under the Value Added Tax (VAT) regime were first introduced. This was added to help cushion the impact of increasing global prices on Dominican consumers.

The Prime Minister has taken this decision to extend the relief due to the ongoing response to new global developments, especially the escalating tensions involving Iran.

Prime Minister Skerrit stated, “And so the cabinet has decided to go back to parliament to extend that measure further to help cushion the impact of the war on Dominican citizens and residents. Both the import duty waiver and the VAT will be extended.”

He further mentioned that this relief will remain in effect until the end of July, 2026 and added that this measure will be reviewed again during the upcoming budget period.

The Prime Minister described this move as “good news for the Dominican people.” He also emphasised that all the sectors of society will benefit, including families, small businesses and the hospitality industry.

PM Skerrit also pointed to a broader strategy in order to build a self-sufficient Dominica. With the ongoing investments in agriculture, the development of the national abattoir and renewable energy initiatives such as the geothermal energy plant will make Dominica more self reliant.

The Prime Minister said that all of these efforts are taken in order to make Dominica more self-reliant, so that when external shocks occur, they have less impact on Dominicans way of life.