VAT relief extended for four months

The Government of Dominica has extended the VAT relief for another four months, ending on July 31, 2026, to reduce the effects of rising costs on the public.

Finance minister, Dr. Irving McIntyre, made the disclosure while addressing The Sixth Meeting of the Third Session of the Eleventh Parliament on Friday.

During the presentation of the fiscal year 2025-2026 Budget address, government announced its intention to expand the list of VAT exempt goods for a period of six months with effect from October 1, 2026.

The exemptions were proposed to cushion the impact of higher-than-normal imported inflation on the citizens of Dominica and residents during that period.

The expanded list, which compromises 26 goods, was affirmed by resolution of parliament in November 2025.

The 26 goods which had no VAT from October 1, 2025 to March 31, 2026, are: salted herrings, codfish, onions, garlic, split peas, red kidney beans, black eyed peas, lentils, pigeon peas, cream of wheat, cornmeal, oats, luncheon meat, canned corn beef, canned herring, canned sardines, canned tuna, canned mackerel, cereals, biscuits, orange juice, tomato ketchup, toothpaste, laundry detergent, toilet paper, and sanitary napkins.

“Mr. Speaker the VAT exemptions expired on March 31, 2026,” Dr. McIntyre said. “It was government’s intention to revert charging VAT on the items bearing in mind that the recent IMF article found that inflation continues to ease. However, Mr. Speaker, recent geopolitical developments in the Middle East has resulted in a significant increase in global oil prices…“

He continued, “In this circumstance, government has determined that it is necessary to extend the period of exemptions for another four months, ending on 31st of July 2026, in order to mitigate the impact of rising prices on consumers.”

The minister said that the government continues to look out for the best interest of the people of Dominica.

“To avoid hardships on our people we find ways other than through taxes to raise revenue and provide relief when required,” he stated. “Note Mr. Speaker, that we have also extended Import Duty Exemptions on these 26 goods for the same 4 months period ending July 31st, 2026.”

Dr. McIntyre encouraged the suppliers of these items to cooperate with the government by passing on the benefits of these exemptions to the consumers.

Meanwhile, Prime Minister Roosevelt Skerrit 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.”

According to him, the history of Dominica will show that no government in Dominica has been more people -centered, more compassionate, more caring and more empathetic, “than this government that I have the honour to lead.”

Parliament was adjourned Sine Die.

Section 18 (1) of the Value Added Tax Act, Chapter 67:08 of the 2017 Revised Laws of the Commonwealth of Dominica provides that the supply of goods or services specified in paragraph 2 of Schedule II is an exempt supply; and whereas section 21 of the Act provides that an import of goods or services is an exempt import where the import would be an exempt supply, under section 18 and paragraph 2 of Schedule II, if it were a supply of goods or services in Dominica; and whereas section 105(1) of the Act authorises the Minister to amend the schedules of the Act by Order published in the Gazette; and whereas section 105(2) of the Act provides that an Order made under subsection (1) shall be subject to affirmative resolution of Parliament; and whereas on the 7th day of April 2026 the Minister made the Value Added Tax (Schedule) (Amendment) Order, 2026; and whereas it is desirable that the Value Added Tax (Schedule) (Amendment) Order, 2026 be affirmed; Be it therefore resolved as follows: (i) This Order may be cited as the Value Added Tax (Schedule) (Amendment) Order, 2026; and (ii) The Value Added Tax (Schedule) (Amendment) Order, 2026, which was laid on the table of the House on the day 10th day of April 2026 is affirmed.