Montserrat: Tax measures in 2025/2026 budget
Reduced customs duties and consumption tax
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