The Bahamas will remove VAT from all food items previously taxed at 5% effective April 1 2026. The zero‑rate will cover unprepared groceries such as fresh produce, baby food, frozen foods, meats, staples, milk and eggs, but excludes prepared meals and restaurant food. The change aims to ease cost‑of‑living pressures.
The VAT removal takes effect on April 1 2026.
Unprepared food items such as fresh fruits and vegetables, baby food, lunch snacks, frozen foods, uncooked meats, rice, flour, sugar, dried beans, bread, milk, eggs and other essential grocery items will be zero‑rated.
No, prepared meals, restaurant food, and items altered by cooking or preparation before sale are not covered by the zero‑rate.
The change aims to address cost‑of‑living concerns for Bahamians.
The Free National Movement has long called for the removal of VAT on all food items.
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