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Bahamian Prime Minister Announces 50% VAT Reduction on Food Items Starting April 1

  • VAT Rate Reduction: Effective April 1, 2025, the VAT rate on food sold in stores, including fresh fruits, vegetables, baby food, snacks, and frozen foods, will be reduced from 10% to 5%.
  • Application to Imports: The reduced VAT rate will also apply to imports of covered foods, ensuring consistency in pricing for consumers.
  • Exclusions: Prepared foods sold in delis will not benefit from the reduced VAT rate, maintaining the standard rate for these items.

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Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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