News

The Government of Dominica has taken strategic action to ease the impact of rising living costs by introducing tax relief measures that provide financial relief to households throughout the country.

The announcement was made by Minister for Finance, Honourable Dr. Irving McIntyre, during the presentation of the EC$2.213 billion National Budget for the 2025–2026 fiscal year, delivered on Friday.

At the heart of the new budget is the elimination of import duties and Value Added Tax (VAT) on a selection of essential goods—an initiative aimed at lowering grocery bills and improving access to basic household items.

“This Government is fully aware of the financial pressures families are facing,” Dr. McIntyre stated. “We have taken decisive action to ease that burden.”

The tax exemptions apply to everyday necessities such as chicken, salted fish, milk, butter, cereals, cooking oil, soap, toothpaste, infant formula, and juices. Starting October 1, the list will temporarily expand for six months to include canned goods, dry goods, sanitary napkins, and toiletries.

These zero-rated items are expected to provide immediate relief to working families, particularly those in the low- and middle-income brackets.

Dr. McIntyre underscored that the initiative is part of a broader “people-first” governance strategy focused on strengthening economic resilience, improving food security, and promoting sustainable development.

“This budget is not just about numbers. It’s about people,” he affirmed. “It’s about supporting our citizens through challenging times while laying the groundwork for long-term growth.”

While the tax relief offers short-term ease, the Finance Minister encouraged citizens to exercise financial prudence, noting the ongoing challenges of global economic uncertainty, elevated import costs, and supply chain disruptions.

He reaffirmed the government’s commitment to protecting the most vulnerable, while upholding fiscal responsibility and ensuring economic stability.