Government Cuts VAT On Unprepared Food Items

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NASSAU, BAHAMAS – The government is moving to ease the rising cost of living by removing 5% VAT on unprepared food items a move aimed at giving consumers some relief at the grocery store.

But on the streets today, Bahamians told Our News they’re cautiously optimistic hopeful prices will drop, but unsure whether the relief will go far enough.

Our Delvardo Emmanuel reports.

“ VAT shouldn’t have been on them to begin with, so it’s a good idea.” – Bahamian Resident

Reaction on the streets Tuesday was mixed following government’s announcement to remove 5% VAT on unprepared food items.

For some, it’s a step that should have been taken long ago.

The announcement made during Prime Minister Philip Davis’ first national address for 2026, confirmed that effective April 1st, VAT will be eliminated on unprepared food sold at grocery stores across the country.

The list includes fruits, vegetables, baby food and other basic items.

The move follows last year’s reduction, when VAT on food was cut from 10% to 5.

For some shoppers, the change could make a noticeable difference.

“ It’s a great movement, a great move. It helps a lot of people, the poor people, and think it, it works so good. I goes in the food store, spend $300 to spend a two day meal, you know, but now I could go there and spend $300 and get a week worth of food stuff” – Bahamian Resident

“ That’s a good thing. I mean, it’s a, it is a really good thing. ’cause guess what? Some people, them don’t really don’t know the prime. They’re trying to do half the price and stuff like that. But like, I mean, like how. Like how the food says they, the press the inside.” – Bahamian Resident

The VAT cut is the latest in a series of adjustments under the Davis administration, aimed at easing cost-of-living pressures.

But for some, it doesn’t go far enough.

“ Take that off all food because you have to eat every day. But like the rest of stuff like fridge furniture and different, especially when it comes to health too, that should be off health. You like medicine and stuff, you know, and food. Mm-hmm. Food is very, people have to eat three, four times a day. So that’s my view on it.”

Reaction also spilled over on social media, with some praising the move and others saying it’s too little, too late.

One comment reading, “that’s good, my prime minister.”

Another saying, “after four years, that’s not good enough.”

While others added, “any dollar saved is a welcomed one.”