The Government of Dominica has extended the existing Value Added Tax (VAT) exemption and import-duty waivers on a range of essential goods for an additional two months, providing continued relief to households facing the impact of global inflation and higher import costs.

Announcing the measure during the presentation of the 2026/2027 National Budget, Minister for Finance, Economic Development, Climate Resilience and Social Security, Hon. Dr. Irving McIntyre, said the relief will now remain in effect until September 30, 2026.

The extension follows Government’s earlier decision to exempt a range of essential goods from VAT and import duties through July 31, 2026, in response to rising global prices, elevated shipping costs and continued supply chain disruptions.

The Minister noted that while international conditions have improved in some areas, many of the external pressures affecting food and commodity prices continue to impact small, import-dependent economies such as Dominica.

“Government therefore believes it is prudent to continue providing this important relief to households,” he said.

The Minister explained that while the exact savings will vary depending on the product and the taxes that would ordinarily apply, the objective is to prevent international price increases from being fully passed on to Dominican families.

Government also made it clear that businesses benefiting from the concessions are expected to pass the savings on to consumers.

The Minister stressed that importers, wholesalers and retailers have a responsibility to ensure that the reduced taxes translate into lower prices for households.

“Let there be no misunderstanding: a concession granted by the State must not be converted into a larger private profit margin. Relief at the port becomes household relief only when it is reflected fairly in the shelf price. We will closely monitor prices to ensure that the intended savings reach our families,” he said.

The extension forms part of Government’s broader strategy to cushion households from the effects of global inflation while protecting purchasing power and supporting the cost of living.