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
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