Opposition leader Dr. Ralph Gonsalves has raised significant concerns about the government’s upcoming first-ever VAT-Free Day, arguing that the initiative primarily benefits upper-middle-class consumers rather than the average citizen.
Drawing from regional experiences, he highlighted similar difficulties encountered by other Caribbean nations, particularly Barbados, in executing such tax-relief programs.
“This is not a day that will meaningfully support our most vulnerable populations,” Dr. Gonsalves stated, emphasizing that the proposed VAT-Free Day disproportionately advantages more affluent segments of society.
He argued that the initiative fails to address the economic pressures facing working-class and lower-income residents.
During his first post-election press conference on Wednesday, Gonsalves delivered a pointed critique of the December 19th, 2025, initiative, warning of potential implementation challenges and limited economic impact.
The VAT Zero-Rated/VAT-Free Day applies strictly to tangible personal items.
As such, the term “eligible goods” includes –
- Consumer Electronics e.g. Televisions, computers, smartphones, audio equipment.
- Household Appliances e.g. Refrigerators, stoves, washing machines, microwaves.
- Food and Beverages, inclusive of both Non-Alcoholic and Alcoholic Beverages.
- Clothing and Footwear e.g. All apparel, school uniforms, work boots.
- Furniture e.g. Beds, sofas, dining sets, office furniture.
- Building Materials e.g. Cement, lumber, steel, paint, tiles, plumbing fixtures.
- Automotive Parts e.g. Tires, batteries, spare parts (excluding the motor vehicle itself).
- Cosmetics and Toiletries e.g. Perfumes, skincare, non-prescription personal care items.
- General Merchandise e.g. Toys, books, decor, kitchenware.
The following supplies are strictly excluded from the zero-rated application on that Day –
- (a)Services of any kind, including tourism and hospitality services
- (b)Tobacco products e.g. cigarettes, cigars and loose tobacco
- (c)Firearms and ammunition
- (d)Motor vehicles
The sale of prepared meals and beverages at hotels, guesthouses, restaurants and other similar establishments are excluded as being eligible for the VAT Zero-Rated/VAT-Free Day.
