Bahamas PM announces VAT removal on unprepared food to ease cost of living
Key Points(3)
- He said the government remains focused on taking practical steps to put more money back into the pockets of Bahamians.</p> <p data-start="663" data-end="964">Central to the new measures is the removal of Value-Added Tax on unprepared food.
- Under the announcement, VAT on these items will be reduced to 0%, lowering the cost of everyday groceries and offering immediate relief at checkout for consumers.
- The change is scheduled to take effect on April 1, 2026.</p> <p data-start="966" data-end="1380">The announcement builds on a series of affordability-focused initiatives already implemented by the Davis administration.
Bahamas Prime Minister Philip Davis on Monday announced additional measures aimed at easing the cost of living and providing direct financial relief to Bahamian families, reaffirming affordability as a top priority of his administration.
Speaking as the country continues its recovery from recent economic crises, the prime minister acknowledged that while progress has been made, many households are still struggling with high prices. He said the government remains focused on taking practical steps to put more money back into the pockets of Bahamians.
Central to the new measures is the removal of Value-Added Tax on unprepared food. Under the announcement, VAT on these items will be reduced to 0%, lowering the cost of everyday groceries and offering immediate relief at checkout for consumers. The change is scheduled to take effect on April 1, 2026.
The announcement builds on a series of affordability-focused initiatives already implemented by the Davis administration. These include lowering the overall VAT rate from 12% to 10%, reducing VAT on essential items, raising the minimum wage, expanding access to free medication through the National Prescription Drug Plan, providing electricity bill relief, and rolling out the National School Breakfast Programme.
According to the Office of the Prime Minister, the measures reflect the administration’s approach to governance—described as steady, responsible, and results-driven—with a focus on improvements that directly impact daily life. The initiatives form part of a broader effort to ensure economic recovery leads to shared progress and greater financial security across all communities.
Prime Minister Davis stressed that the work is ongoing, noting that the government will continue to listen to citizens, respond to their needs, and keep Bahamian families at the center of decision-making. Further details on the newly announced measures are expected to be released by the relevant ministries in the coming weeks.
