A VAT Free Food Industry: Making healthy eating affordable again
It is critical that we establish a bold, simplified, and more efficient tax reform strategy aimed at eliminating inefficiencies, reducing opportunities for tax evasion, and maximising government revenue collection. These inefficiencies lead to higher cost of living, more financial strain on households, and a quality of life which decreases due to people’s inability to afford it.
Particularly when it comes to our nutrition, and the resulting lifestyle and health consequences, maintaining a good diet becomes a herculean task. Eating healthily should never be a burden, and so we will abolition the 17.5% Value Added Tax (VAT) on all imported food items. Under the current VAT System, private sector entities act as intermediaries in the collection of a 17.5% VAT on most goods and services. This model, while once effective, has now become inefficient and prone to abuse, tax leakage, and non-compliance.
We will instead, establish a 16% Point-of-Entry Goods Levy, which will bring about a 19% net saving to consumers. With grocery food bills currently ranging between approximately 1,000 to 3,000 BBD per household, this means putting 190 to 500+ BBD back into the hands of our families.
This new levy will eliminate the collection of the 17.5% Value Added Tax by third-party private sector entities and ensure that taxes on imported goods that now attract the V.A.T are collected by the government itself at the ports of entry.
This policy makes the costs of goods more transparent and predictable, helping working families manage their budgets. With the tax collected at the point of entry, we remove the layer of “pass-through inflation” and encourage competitive, honest pricing.
The rationale for this shift is both practical and principled:
Government Revenue Security
By collecting the tax at the ports, the government gains direct control over a major source of public revenue, reducing the risks of underreporting delayed payments, and non-remittance by businesses.
1
Reduced Administrative Burden
Businesses will no longer be required to file complicated VAT returns. This streamlines operations and reduces red tape, especially for small and medium enterprises (SMEs).
2
Less Tax Evasion and Fraud
VAT collection by private entities often leads to under-invoicing, double accounting, and VAT fraud. Moving tax collection to the front end closes these loopholes.
3
Consumer Transparency
Consumers will face one consistent rate included in the price of imported goods, helping to demystify pricing structures and reduce the indirect burden of taxation.
4
Healthcare infrastructure which best serves you
The 2023 Barbados Health Report, indicated persistent challenges, including overcrowding at the Queen Elizabeth Hospital (QEH), limited access to specialized services, and uneven distribution of healthcare resources across parishes.
These issues are compounded by an aging population and rising rates of chronic illnesses such as diabetes and hypertension, which place increasing strain on the system. Long-term capacity and access needs remain limited, especially in the eastern and southern parishes.
There is widespread public frustration with the current state of healthcare in Barbados. The Queen Elizabeth Hospital (QEH), once a symbol of national pride, has become a bottleneck of inefficiency, overcrowding, and mismanagement, reflecting years of neglect, poor planning, and lack of investment in the island’s health infrastructure.
We propose that a new stand-alone, centrally located, mini hospital, accident and emergency building be constructed and fully outfitted with the necessary equipment and staffing to separate the care and attention of emergency cases from the compound of the QEH.
To address this chronic dysfunction and to respond decisively to the real needs of our people, we would construct a new, state-of-the-art, stand-alone Emergency and Acute Care Hospital, separate from the QEH compound, yet centrally located for maximum national accessibility.
A new hospital would decentralize healthcare delivery, reduce pressure on the QEH, and improve regional access to critical services. Strategically located in Saint Philip or Christ Church, the facility could serve under-served populations and act as a disaster-resilient medical hub. The construction of a new hospital would stimulate economic activity through job creation in construction, healthcare, and support services.
It would also position Barbados as a regional leader in medical tourism, particularly if the facility includes private wings and advanced diagnostic capabilities.
There is also a need for all polyclinics to be equipped with a range of services including the reintroduction of a comprehensive dental care service. This would address a current need where many communities lack access to basic and preventive healthcare.
This would also reduce pressure on the main hospital, foster healthier communities, and enable cost savings through preventive care.
Establishing Parish Food Centres
In our efforts to further increase the accessibility and affordability of the goods you need for healthy living, we will establish eleven (11) Parish Food Centres—one in each parish—to put 50 of the most basic and nutritious food items in your pantry tax & duty free.
This policy removes the middleman from the food distribution chain and eliminates the attached costs at every stage before it gets to the consuming public.
Food prices will be greatly reduced, and because it’s not on all consumer items, its effect should not interfere with the other retailers’ overall bottom line and profitability.
