Dominica to End Tax Compounding on Imports in October

Effective October 1, 2026, Dominica will eliminate the practice of tax compounding on imported goods. Currently, excise tax and VAT are calculated on the cost, insurance, and freight (CIF) value plus other charges and taxes. The new policy mandates that these taxes be computed solely on the CIF value, aiming to simplify the import taxation system and reduce additional costs for consumers. Finance Minister Dr. Irving McIntyre announced this change during the 2026/2027 National Budget presentation, emphasizing the government's commitment to modernizing the clearance system at ports and reducing costs and delays.