National

Mixed Reactions To VAT Cut On Uncooked Food

GRAND BAHAMA, BAHAMAS – As of April 1st, 2025, the Value-Added Tax rate on unprepared food items has been reduced from 10 percent to 5 percent.

Published

12 months ago

April 1, 2025

Italia Hall

GRAND BAHAMA, BAHAMAS – As of April 1st, 2025, the Value-Added Tax rate on unprepared food items has been reduced from 10 percent to 5 percent.

This tax cut applies to a wide range of grocery items at stores across the country. Over on Grand Bahama, we visited a local grocery store to hear from residents on how this change is impacting their shopping experience.

Sean Gardiner – Resident

“Value-Added Tax, yeah, I guess when I shop more, we will see how it pans out.”

The government selected the April 1st implementation date to allow merchants enough time to update their pricing systems. However, the question remains, are consumers actually seeing the difference at the checkout line?

Our news team visited a local grocery store on Grand Bahama Tuesday morning, where some shoppers were checking prices to ensure that businesses were complying with the new VAT reduction.

And while the tax cut is meant to provide relief, not everyone is convinced it’s making a difference. Grand Bahama resident Miranda Russell says she saw little to no change in her bill and believes the government needs to do more.

Miranda Russell – Resident

“It’s still expensive to buy groceries in this country. Until the government takes all the taxes off, not just breadbasket items, the things that we are supposed to eat, like vegetables, lean protein, and fruit. Forget rice, sugar, forget tea. We need to have a real look at what the food table is in this country, and if the government is going to assist Bahamians in eating better, because it washes out in medical bills.”

But for others, the 5 percent decrease is a welcomed initiative.

Rob Speller – Resident

“Anything helps at the moment because things are difficult, and prices are going up. So anything helps, I would think. Five percent is a lot of money, whether you recognize that in the bigger shops, but it helps if it’s on the right products.”

Susan Hepburn – Resident

“Five percent may not seem like a lot, but for those persons who are struggling, it could mean a great deal of difference in their grocery bills. It’s always appreciated when you can see some reduction in the cost of food because the cost of food is continually going up.”

For some shoppers, like Katy Taylor, the change hasn’t been noticeable.