As part of the 2024/2025 Mid-Year Budget Statement, Bahamas Prime Minister and Minister of Finance Philip Davis announced an amendment to the VAT Act to reduce the VAT rate on the sale of unprepared food from 10% to 5% with effect from 1 April 2025, including imports. The reduced VAT rate will apply to entities whose primary business is the sale of unprepared food, including grocery stores, convenience stores, and gas stations. It will not apply to restaurants.