NASSAU, BAHAMAS – Operations Manager at the Department of Inland Revenue (DIR) Dexter Fernander told reporters on Thursday morning that food store operators should not be fearful concerning how they will seamlessly transition to a newly implemented Value Added Tax (VAT) decrease on food items; the Prime Minister recently announced that VAT on food items at food stores will be decreased from 10% to 5% as of April 1, 2025.
Prime Minister Davis noted that the new tax regime has been implemented to ease the economic burden on the backs families throughout the country who are currently grappling with inflation.
Fernander explained that the shift in the current tax regime will be outlined in a transitional booklet which food store operators can expect to be released during government’s Mid-Year Budget Presentation.
He said the guide will provide a comprehensive rundown on how to handle current inventory and how to proceed with transitioning to the new tax regime of 5% on all food items, with exception of deli prepared foods.
