The Federal Government will introduce a temporary reduction of the Value Added Tax (VAT).

A VAT Relief Holiday was announced by Prime Minister and Minister of Finance, Dr. Terrance Dre. He noted on December 16^th that for the first six months of 2025, the VAT Rate, which is charged at 17 percent will be reduced to 13 percent.

The temporary reduction in VAT is expected to enhance consumer earnings.

“To safeguard these savings, our recently passed Consumer Protection Act, and other relevant laws, will allow for strict monitoring of businesses to prevent price gouging or unfair practices,” the prime minister stated.

Prime Minister Drew added that the strategic decision will help to further reduce the impact of inflation and assist households to adjust as multiple measures to stimulate the economy gain momentum.