Prime Minister, the Hon. Philip Davis announced further Value Added Tax (VAT) reductions on non prepared food items in a national address delivered in Monday evening. This comes after he announced the initial reduction of 5% in 2025.
He said, “this will apply to fresh fruits and vegetables, baby food, lunch snacks, frozen foods and other groceries. Everything except prepared meals sold hot or ready to eat.”
Mr. Davis also addressed the cost of living in his address. He said, “for too many Bahamian the pressure at the supermarket checkout is still hitting hard. Our country’s dependence on food grown abroad and the way the global economy has become so interconnected has made us too vulnerable to shocks we do not control. From supply chain breakdowns to wars and conflicts thousands of miles away.”
The Prime Minister spoke to the country’s investment in agriculture through the advancement of programs and initiatives like hydroponics, the Buy Back Program and grants for farmers. “These efforts help our farmers and producers find markets and scale up. And they mean we can buy local so we can eat healthier and pay lower prices.”
The government is also expanding tax relief for property owners. The Prime Minister said, ‘owner occupied duplexes and triplexes are now eligible for the residential exemption. First time homeowner concessions have been expanded. These are changes which will help more Bahamian families build wealth.”
The VAT adjustments announced by the Prime Minister are expected to take effect on April 1st.
