NASSAU, The Bahamas – Tonight, Prime Minister Davis announced additional measures to further reduce the cost of living and deliver real, practical relief for Bahamian families.
The Prime Minister made clear that while the country has made meaningful progress since emerging from crisis, too many households are still feeling the strain of high prices. Addressing affordability remains a top priority of the Davis administration, and the Government will continue to act where it can to put more money back in people’s pockets.
As part of that commitment, Prime Minister Davis announced the removal of VAT on unprepared food, reducing the tax burden on everyday grocery items and providing direct relief at checkout for families across The Bahamas.
This reduction in VAT to 0% will go into effect on April 1, 2026.
This announcement builds on actions already taken by the Davis administration to make life more affordable, including lowering VAT from 12% to 10%, reducing VAT on essential items, raising the minimum wage, expanding access to free medication through the National Prescription Drug Plan, providing electricity bill relief, and delivering the National School Breakfast Programme.
These measures reflect the administration’s approach to governing: steady, responsible, and focused on results that people can feel in their daily lives. They are part of a broader effort to ensure that economic recovery translates into shared progress and greater financial security for Bahamians in every community.
The Prime Minister emphasized that the work is ongoing. The Government will continue to listen, continue to act, and continue to put the needs of Bahamian families at the center of every decision.
Further details on the announced measures will be provided through the relevant ministries.
