The Inland Revenue Department (IRD) has issued a statement to the public that the Value Added Tax (VAT) rate has reverted to 17% as of July 1^st, 2025, following the expiration of the temporary reduced rate of 13%.

This adjustment aligns with the policy measures outlined in the Hon. Prime Minister and Minister of Finance’s 2025 Budget Address, which introduced the reduced VAT rate as part of the Government’s broader economic relief and recovery strategy.

 All VAT-registered businesses are encouraged to take the necessary steps to update their pricing systems, accounting software, and point-of-sale configurations to reflect the return to the standard VAT rate. The Inland Revenue Department stands ready to provide technical support on key transitional matters.

Additionally, the Budget Boost Wallet (BBW) also came to an end on July 1^st. The initiative provided contributors of the Social Security Fund who resides in the federation and earns less than $EC5000 per month with a $250 benefit from January to June.