SVG Expands VAT‑Free Items to Include Food and Adult Diapers

The government of Saint Vincent and the Grenadines (SVG) announced an expansion of Value‑Added Tax (VAT) exemption to nine items, covering certain food products and adult diapers. Prime Minister Ralph Gonsalves made the statement on Wednesday, 29 October 2025. The new rule takes effect on 3 November 2025.

Previously, the VAT‑free list did not include all essential goods, prompting the addition of eight food items such as chicken thigh cuts, processed cheddar cheese, canned tuna, canned sardines, chicken sausages, cereal, lentils, and health drinks. Adult diapers were also added to broaden consumer relief. The selection was vetted by the Ministry of Finance and approved by the full cabinet to facilitate monitoring.

The measure is projected to cut government revenue by about US$8 million (approximately Rp133 billion) annually, while potentially boosting consumer purchasing power. Officials describe the targeted approach as beneficial for both citizens and the state. Ongoing fiscal oversight will monitor the policy’s impact.