In a significant move to alleviate economic pressure on citizens, the Dominican government has enacted sweeping tax reforms targeting essential consumer goods. Finance Minister Dr. Irving McIntyre presented the legislative amendment to Parliament, officially removing Value Added Tax (VAT) from 26 critical items in the national basket of goods.
The comprehensive exemption list encompasses fundamental food staples and household products, including salted herrings, codfish, various legumes (split peas, red kidney beans, black-eyed peas, lentils, pigeon peas), cereals (cream of wheat, cornmeal, oats, wheat bran), canned protein sources (luncheon meat, corned beef, herring, sardines, tuna, mackerel), along with orange juice, tomato ketchup, unsweetened biscuits, toothpaste, laundry detergents, toilet paper, and sanitary napkins. Minister McIntyre emphasized that these items already benefit from zero import duties, creating a compounded reduction in consumer prices.
Dr. McIntyre articulated the government’s fiscal philosophy, stating, ‘To prevent undue hardship on our population, we are developing alternative revenue generation methods rather than relying solely on taxation, while providing necessary relief when circumstances demand.’ The policy implementation requires formal amendments to Schedule II of the Value Added Tax Act (Chapter 67-8 of the 2017 revised laws).
Concurrently, Dr. Vince Henderson, Minister for Foreign Affairs, International Business, Trade and Energy, highlighted the regional economic dimension of this policy. He revealed that the Caribbean Community (CARICOM) had approved the Dominican Republic’s request to zero-rate these goods under the Common External Tariff framework. Minister Henderson urged domestic importers and supermarkets to prioritize sourcing from CARICOM producers, noting that over 75% of the exempted items are adequately produced within the trade bloc and already enter duty-free. ‘Only eight items on the list require sourcing outside CARICOM,’ Henderson clarified, emphasizing the dual benefit of consumer relief and regional economic protectionism.
Both ministers explicitly called upon supply chain stakeholders—particularly retailers and distributors—to ensure the full benefit of these tax exemptions reaches consumers through corresponding price reductions, rather than being absorbed as additional profit margins.