VAT and Customs Duties removed on essential food items in Dominica: PM Skerrit

Roseau, Dominica: The government of Dominica has removed the customs duties and VAT on a wide range of essential food items. The step was a practical intervention announced in the 2025-2026 national budget, aimed at easing the burden on households, especially those with limited income amid the rise in global inflation.

Speaking at a year-end press conference on Monday, PM Dr Roosevelt Skerrit added that they did this because a responsible government must stand with its people in the face of any hardship that threatens their well-being.

“We did this because no one should ever be forced to choose between putting food on the table and meeting other basic needs,” said the prime minister. He also expressed delight with the advantage of the step and noted that these reductions across the board had a positive impact on the purchasing power of families and their overall ability to meet daily expenses.

To assess the impact of the removal of VAT and import duties on the selected list of consumer goods, the division of trade conducted a market surveillance exercise, both before and after the policy took effect. The first exercise was carried out prior to October 1, 2025 to establish baseline prices.

A second exercise was concluded on December 12, 2025, with the objective of measuring changes in retail prices following the implementation of the VAT and import duty exemptions. The Division focused its assessment on the big six and these are the largest importers and distributors of these goods in Dominica whose practices significantly influence retail prices islandwide.

The big six are J Astaphan and Company Limited, HHV Whitchurch and Co. Ltd, Greens Supermarket, Fine Food, Esmart, and ACS. The findings from the December 12, 2025 exercise clearly demonstrate that the measures have been effective.

Reductions were observed across the majority of products and brands monitored in all supermarkets surveyed, focusing on a representative subset of seven products, that is approximately 23.3% of the overall product list.

Notable prices decreases were recorded, including meat for lunch with reductions of up to 13.36%, corned beef with reductions of up to 13.07%, breakfast cereals with reductions of up to 12.3%, unsweetened biscuits with reductions of up to 18.89%, orange juice with reductions of up to 42.28%, toothpaste with reductions of up to 27.98%, tomato ketchup with reductions of up to 24.3%.

PM Skerrit noted that 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 point. The exercise provides strong evidence that the policy intervention is working as intended, easing cost of living pressures, and delivering tangible benefits to the households across Dominica.