By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

Inspectors from the Government’s consumer affairs unit will maintain a strong presence at food retailers, gas stations and pharmacies to today to ensure businesses comply with the Government’s elimination of VAT on uncooked foods which takes effect on April 1.

Rex Adderley, head of the consumer affairs unit, said teams will be actively checking that VAT has been removed at the point of sale. “Inspectors will be out to the stores tomorrow to check and confirm that VAT is removed from all unprepared food,” he said.

The move follows the Government’s announcement that VAT will be eliminated on a range of basic food items, part of a broader effort to ease the cost of living for Bahamian households amid ongoing concerns over high prices.

Both the consumer affairs unit and the Price Control Commission are expected to play a central role in monitoring compliance, with officials warning that businesses must properly eliminate VAT and pass savings on to consumers.

The policy applies specifically to unprepared food items, generally understood to include raw or basic grocery products, and not prepared or hot foods.
Officials have indicated that inspections will focus not only on whether VAT has been removed, but also on pricing practices to ensure that retailers do not offset the tax break with increases elsewhere.

The initiative comes as consumers continue to voice frustration over rising food costs, with many hoping the VAT removal will bring meaningful relief at the checkout. Consumer protection authorities have urged shoppers to pay close attention to receipts and report any discrepancies, as enforcement efforts begin immediately.

Businesses found to be in violation could face penalties under existing consumer protection and price control regulations. The VAT-free measure is one of several policy steps aimed at addressing inflationary pressures, with the Government signalling that enforcement will be key to ensuring the intended benefits reach the public.