Dominica to extend VAT and import duty relief as global prices continue to rise: PM Skerrit

Dominica: Prime Minister Dr Roosevelt Skerrit announced that the Cabinet will return to Parliament on April 10, 2026, to submit new fiscal relief packages to support families who continue to struggle with the rising costs associated with food and other essential goods as a result of the increase in global prices.

“I am pleased to announce that we will return to Parliament on April 10 to extend the VAT and import duty waivers on essential food items. This is part of our continued effort to cushion the impact of rising global prices on Dominican families and businesses,” said PM Skerrit.

The above mentioned extension was proposed by the Prime Minister on April 2nd. It includes two main tax reliefs that were proposed during the 2025/2026 budget, and they include removing import duties and the zero rating of certain goods or exemption of Value Added Tax (VAT) on basic food items.

According to the Prime Minister, the government has put forth these extended measures in response to an ongoing situation in the Middle East which includes escalating tensions with Iran for gases. 

He said, “So the cabinet has decided to go back to parliament to extend that measure further to help cushion the impact of the war on Dominican citizens and residents. Both the import duty waiver and the VAT will be extended.”

PM Skerrit also said that the government is taking these early solutions for citizens affected by the global economy issues and the conflict. Both the import duty waiver and the VAT relief will be reviewed again during the next budgetary period. The Prime Minister of Dominica also stated that the said measures will remain effective until July 2026.

He explained that the extension is a big step forward and described the move as “good news for Dominican people,” as it benefits many sectors like households, small businesses, infrastructure, hospitality, and the tourism industry.

PM Skerrit highlighted the government’s effort to increase national self-sufficiency, which includes the ongoing investments in agriculture, development of the national abattoir, and expanding renewable energy projects like the geothermal energy plant.

The Prime Minister also noted that they are taking steps to make Dominica more resilient and reduce the impact of external shocks on the citizens and their day to day lives.“All of these efforts are about making Dominica more self-reliant, so that when external shocks occur, they have less impact on our way of life,” noted PM Skerrit.