With rising food and housing costs impacting households across Dominica, the 2025–2026 National Budget, presented on Friday by Finance Minister Hon. Dr. Irving McIntyre, outlines strategic measures aimed at easing cost-of-living pressures—particularly, low-income families, and vulnerable communities.
The Minister acknowledged public concern about inflation and assured that government is taking firm, targeted action to provide relief where it matters most. “One measure we have implemented is the removal of customs duty and value added tax (VAT) on a range of essential food items,” Dr. McIntyre said. “This policy is designed to ease the burden on households by reducing the cost of basic goods that form part of the daily diet of our people.”
The list of food items currently benefiting from zero import duty includes:
Chicken backs and necks, chicken wings, cod fish, herring, salted mackerel, milk, butter, cheddar cheese, rice, oats, cream of wheat, cooking oil, sausage, canned sardines, canned mackerel, canned tuna, garlic, onions, split peas, red kidney beans, lentils, green tea, black tea, flour, pasta, margarine, cereals, apple juice, and infant formula.
Items already exempt from VAT include: Milk, flour, rice, sugar, infant formula, locally produced agricultural products, and locally produced bread.
The Finance Minister announced that government will expand the list of VAT- and duty-exempt items for a six-month period in the upcoming financial year.
Newly exempted items will include: Cod fish, onions, garlic, split peas, red beans, black eye peas, lentils, pigeon peas, cream of wheat, cornmeal, oats, luncheon meat, canned corned beef, canned herring, canned sardines, canned tuna, canned mackerel, cereals, wheat bran, biscuits (unsweetened), orange juice, tomato ketchup, toothpaste, laundry detergent, toilet paper, and sanitary napkins.
Additionally, beginning October 1, 2025, the government will remove import duties on: Pigeon peas, luncheon meat, canned corned beef, cereals, biscuits, orange juice, tomato ketchup, toothpaste, laundry detergent, almond milk, and soy milk.
The Minister also appealed to citizens to take proactive steps in reducing their household expenses. “While government has taken steps to ease the burden, there are additional ways in which we as individuals and households can reduce expenses,” he noted. “One such measure is the revitalization of backyard gardening, which can provide fresh vegetables and herbs year-round, lower food bills, and promote healthier eating. We also encourage citizens to purchase local produce, which is often more affordable and fresher than imported alternatives.”
He added that a collective approach to spending and saving would help build a more resilient society.
“We must foster a culture of financial mindfulness, resourcefulness, and community cooperation. It is this collective effort that will make our society stronger and better equipped to withstand global economic pressures,” Dr. McIntyre said.
The budget outlines several other initiatives aimed at combating inflation and food insecurity, including:
Rebates of 40–50% for farmers in poultry, citrus, and hydroponics, to boost local food production and reduce dependence on expensive imports and the continuation of the resilient housing programme funded by the Citizenship by Investment (CBI) programme and the expansion of housing access for vulnerable groups and young families.
The total national budget for fiscal year 2025–2026, EC$1.213 billion is the largest in Dominica’s history.
The Ministry of Finance, Economic Development, Climate Resilience & Social Security receives the lions share amounting to EC$292 million or 43% of recurrent budget, followed by the Ministry of Health, Wellness & Social Services with EC$72.8 million or 10.7% and the Ministry of Education, Human Resource Planning & Vocational Training receiving EC$71.3 million or 10.5%.