Parliament has approved an extension of the Value Added Tax (VAT) exemption and import duty waivers on essential goods, following debate in Parliament on Friday, April 10, 2026.

The measures will remain in place until the end of July 2026, as part of a targeted response to rising global economic pressures and their impact on the cost of living in Dominica.

Addressing Parliament, Prime Minister Roosevelt Skerrit pointed to the ongoing geopolitical tensions involving the United States, Israel and Iran, noting that the effects of the conflict are already being felt worldwide through increased oil prices, disrupted supply chains and higher transportation costs.

He explained that for small, import-dependent economies like Dominica, these external shocks translate directly into higher prices for food, fuel and other essential goods, placing additional strain on households.

“We are, in many ways, innocent bystanders affected by a conflict not of our making – but we must not be passive in protecting our citizens from its consequences.” the Prime Minister told the House.

“In this context, on March 25th, 2026, we committed to a series of targeted relief measures. Today, we deliver on one of those measures. We are extending the waiver of Value Added Tax and import duties on a range of essential goods until July 2026,” he added.

Prime Minister Skerrit said the decision reflects Government’s commitment to act decisively in the face of growing economic pressures, particularly for vulnerable groups.

“Families have challenges in meeting the rising cost of basic necessities, so this Government is acting with urgency and, importantly, with empathy,” the Prime Minister said.

“This cost-of-living relief measure before us today is therefore about people. It is about the single mother trying to put food on the table. It is about the elderly pensioner managing a fixed income. It is about the working family whose wages have not kept pace with global price shocks.

“By removing these taxes on essential goods, we are easing the cost of living, protecting household incomes and ensuring that basic necessities remain within reach,” he said.

In presenting the measure to the parliament, Minister for Finance, Hon. Dr. Irving McIntyre said that the import duty exemption on the goods has also been extended for the same four-month period ending July 31, 2026.

“We encourage the suppliers of these items to cooperate with us by passing on the benefits of these exemptions to the consumers,” he said.