VAT-Free Day an Overwhelming Success, says PM 

Press Release. Updated 11:18 a.m., Wednesday, December 24, 2025, Atlantic Standard Time (GMT-4).

Prime Minister Dr. Godwin Friday has described the Value Added Tax (VAT) free day, which was held on Friday, December 19, as an “overwhelming success.”

Speaking on radio yesterday, the Prime Minister stressed that the VAT free day delivered real and tangible relief to Vincentians while providing a strong boost to the local economy.

Noting that he was pleasantly surprised, Prime Minister Dr. Friday said he saw the level of participation and engagement across the business community and among consumers, and while technical projections had anticipated increased sales, the scale of public response exceeded expectations.

“I presented it as a cost-of-living measure. It’s putting money back into people’s pockets. We campaigned on putting money back into people’s pockets, and this was about delivering on that promise,” the Prime Minister said.

Dr. Friday noted that by removing VAT for the day, consumers were able to access goods at significantly reduced prices, helping families make ends meet while also stimulating economic activity. He highlighted reports from shoppers who saved hundreds and, in some cases, thousands of dollars on purchases.

The Prime Minister also commended local businesses for going beyond the Cabinet decision, with many merchants offering additional discounts of 10 to 15 percent on top of the VAT exemption.

He said the spirit of partnership stood out, and the VAT free day was not about businesses losing money as the increased sales benefited them, and the ordinary consumer benefited as well.

Addressing concerns that the initiative may have only favoured higher-income earners, the Prime Minister rejected that notion, explaining that many working-class Vincentians were able to purchase essential household items such as refrigerator: and stoves, often paying in full rather than through hire purchase.

“The good part about that is that people got things more affordably. There’s an injection into the economy of spending and enthusiasm, and just this whole sense that things are different. People were happy to spend money,” he said.

Dr. Friday added that while the Ministry of Finance is still analyzing the fiscal impact, much of the money saved by consumers was reinjected into the economy through spending. He emphasized that the VAT-Free Day is part of a broader policy approach, with similar initiatives planned for August to assist families with back-to- school expenses and again in December.

The Prime Minister also praised the business community for embracing the spirit of the initiative and for proactively helping to address minor challenges that arose.

Dr. Friday expressed confidence that the success of the December 19 VAT-Free Day has set a strong foundation for future editions, as the government and the private sector continue to work together to ease the cost of living and strengthen the national economy.

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This information was sourced from a press release posted by the Agency for Public Information.