Bahamians are now paying less for key household and health-related items after the government officially reduced value-added tax (VAT) from 10 percent to 5 percent on a range of essentials.
Prime Minister Philip Davis announced that the cut, effective September 1, applies to medicines, medical supplies, feminine hygiene products, and both baby and adult diapers.
“Medicines will now cost less at the pharmacy. Parents are now paying less for baby supplies. Women are now paying less for feminine care products. Families caring for elderly loved ones are now paying less for adult diapers,” Davis said in a statement issued by the Office of the Prime Minister.
He explained that the relief measure is part of the administration’s efforts to ease financial pressure on households while maintaining strong fiscal discipline. “Reducing VAT to 5 per cent on these essential items is about easing the pressure on households who need it most. This relief is possible because the economy is stronger and government finances are on a sounder footing,” Davis said.
According to the Prime Minister, stronger revenues and declining debt have given the government room to make living costs more affordable. He credited the country’s progress to strategic policy decisions aimed at steering the nation out of economic crisis.
“But our goal has never been recovery alone,” Davis added. “Our mission is to build a bigger, more inclusive economy where economic gains are broadly shared. That is why we are expanding opportunities island by island, creating more jobs, supporting entrepreneurs, investing in roads, docks, and airports, modernizing our electricity grid, and preparing Bahamians with education, training, and upskilling so they can succeed in today’s economy.”
Davis emphasized that the administration will continue working to reduce costs for families and expand opportunities across all islands.
.){kind=link}