Parliament has passed amendments to the Value Added Tax and Excise Tax Acts, giving legislative effect to Government’s decision to discontinue the charging of “tax on tax” on imported goods, effective October 1, 2026.
The measures, announced in the 2026/2027 National Budget, reduce the cost of imports by calculating VAT and Excise Tax on the cost, insurance and freight (CIF) value of imported goods.
Minister for Finance, Honourable Dr. Irving McIntyre, told Parliament that the changes simplify the tax system, improve business liquidity and deliver savings, particularly for direct importers of high-value goods, including motor vehicles.
The Minister said the decision followed representations made during Government’s pre-Budget consultations, when members of the public made a strong case for ending tax compounding on imports.
The Excise Tax amendments also provide an exemption from Excise Tax on imported garbage trucks, supporting Government’s efforts to encourage private participation in garbage collection services. The exemption will reduce the capital investment required by individuals and companies wishing to provide collection services to the Dominica Solid Waste Corporation.
Government said that while it continues to invest in additional garbage trucks, private sector partnerships can help meet the country’s growing waste collection and disposal needs.
Interested service providers are being encouraged to submit proposals in the coming months.
The amendments form part of Government’s budget measures to ease costs, support economic activity and improve essential services.
