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NASSAU, BAHAMAS — Prime Minister Philip Davis has announced that, effective April 1, Value Added Tax (VAT) will be completely removed from all food items that were previously reduced to 5 percent VAT, making many everyday grocery staples more affordable for consumers.
The zero rating will apply to a wide range of unprepared food items sold in food stores, including:
• Fresh fruits and vegetables
• Baby food
• Lunch snacks
• Frozen foods
• Fresh and frozen meats (uncooked)
• Rice, flour, sugar, and dried beans
• Bread and other basic staples
• Milk, eggs, and other essential grocery items
This does not include prepared meals, restaurant food, or items altered by cooking or preparation before sale, such as deli meals and hot food sections.
The move is an effort to assist in addressing cost-of-living concerns by Bahamians, Davis said.
It also follows repeated calls by the Free National Movement, which have long called for the removal of VAT on all food items.
