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Dominica: Tax measures in 2025-2026 budget include extension of VAT exemptions on essential food items

Tax measures aimed at easing living costs and raising revenue

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october 14, 2025

The 2025-2026 budget includes the following tax measures aimed at easing living costs, raising revenue through tourism and vehicle levies, and boosting agriculture:

  • Extension of value added tax (VAT) exemptions on essential food items for six months starting October 1, 2025
  • Increase in eco-tourism fees and introduction of US $30 "Nature Island Fund" fee for visitors as of January 1, 2026
  • Reinstatement of highway maintenance levy and increase in charges on older vehicle imports effective October 1, 2025
  • Agricultural investment rebates


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

Marianne Greenidge | mariannegreenidge@kpmg.bb

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