Montserrat: Tax measures in 2025/2026 budget

Reduced customs duties and consumption tax

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June 25, 2025

The 2025/2026 national budget includes the following changes to customs duties and taxes:

  • Customs duties would be reduced from 15% to 5%
  • Consumption tax would be lowered to 10% for imports from CARICOM countries with a valid certificate of origin
  • Import tax reform would decrease the freight component of the cost, insurance, and freight formula by 50%
  • Reinstatement of a tax-free child allowance of ECD 1,500 per child, for up to three children
  • Overtime income would be taxed at regular rates


For more information, contact a KPMG tax professional in the Eastern Caribbean:

Grant McDonald | grantmcdonald@kpmg.bb

Marianne Greenidge | mariannegreenidge@kpmg.bb

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