NASSAU — Bahamian households are now seeing lower prices on medicines, medical supplies, feminine hygiene products, and baby and adult diapers, following the government’s decision to slash value-added tax (VAT) from 10 percent to 5 percent on these essentials.

The measure, which took effect on September 1, is part of a broader effort to make everyday living more affordable.

Pharmacies, supermarkets, and other retailers have already begun applying the reduced rate. That means parents are paying less for diapers and baby supplies, women are spending less on feminine care, and families caring for elderly relatives are saving money on adult diapers. “Reducing VAT to 5 per cent on these essential items is about easing the pressure on households who need it most,” the government said in announcing the change.

Officials credited the country’s improving financial position for making the relief possible. With revenues increasing and debt levels moving lower, the government said it is now in a position to return some of the gains to consumers.

The tax cut is being framed as part of a wider economic strategy that goes beyond immediate relief. The administration says its long-term mission is to build a “bigger, more inclusive economy where economic gains are broadly shared.”

Current priorities include expanding opportunities across the islands, creating jobs, supporting entrepreneurs, and investing in infrastructure such as roads, docks, airports, and the electricity grid.

Education and workforce training are also highlighted as key pillars. The government says preparing Bahamians with new skills will ensure they can succeed in a modern economy while the benefits of growth reach every community.

“We are focused on widening the circle of opportunity, lowering costs for families, and ensuring growth reaches every island and every community,” the statement said.

Source: Bahamas GIS.