In a significant move to alleviate financial pressures on consumers, the government has announced the removal of Value Added Tax (VAT) on eight essential food items. Prime Minister Ralph Gonsalves made the declaration during his Independence Address on Monday, confirming that the changes will take effect from November 3. The exempted items include chicken parts, processed cheddar cheese, canned tuna, canned sardines, chicken sausages, cereals, lentils, and health drinks like Ensure and Suppligen. These products will now join other food items already exempt from VAT, such as chicken and turkey wings, back, and neck. The Prime Minister emphasized that this targeted approach aims to provide tangible relief to consumers while ensuring the government can monitor the impact effectively. He projected that the exemption would cost the Treasury approximately EC$8 million annually but assured that the country’s expected economic growth would offset this loss. Gonsalves criticized calls for a blanket VAT reduction, arguing that such measures would cost the government EC$60 million annually and necessitate cuts to essential services or increased taxes elsewhere. He also addressed calls to reduce VAT on domestic electricity, noting that nearly 90% of households already fall below the consumption threshold for VAT. The Prime Minister reiterated his commitment to responsible governance, emphasizing that the government’s approach prioritizes the people’s welfare while maintaining fiscal stability.