Opposition leader Dr. Ralph Gonsalves has raised significant concerns about the government’s upcoming first-ever VAT-Free Day, arguing that the initiative primarily benefits upper-middle-class consumers rather than the average citizen.

Drawing from regional experiences, he highlighted similar difficulties encountered by other Caribbean nations, particularly Barbados, in executing such tax-relief programs.

“This is not a day that will meaningfully support our most vulnerable populations,” Dr. Gonsalves stated, emphasizing that the proposed VAT-Free Day disproportionately advantages more affluent segments of society.

He argued that the initiative fails to address the economic pressures facing working-class and lower-income residents.

During his first post-election press conference on Wednesday, Gonsalves delivered a pointed critique of the December 19th, 2025, initiative, warning of potential implementation challenges and limited economic impact. 

The VAT Zero-Rated/VAT-Free Day applies strictly to tangible personal items.

As such, the term “eligible goods” includes –

Consumer Electronics e.g. Televisions, computers, smartphones, audio equipment.

Household Appliances e.g. Refrigerators, stoves, washing machines, microwaves.

Food and Beverages, inclusive of both Non-Alcoholic and Alcoholic Beverages.

Clothing and Footwear e.g. All apparel, school uniforms, work boots.

Furniture e.g. Beds, sofas, dining sets, office furniture.

Building Materials e.g. Cement, lumber, steel, paint, tiles, plumbing fixtures.

Automotive Parts e.g. Tires, batteries, spare parts (excluding the motor vehicle itself).

Cosmetics and Toiletries e.g. Perfumes, skincare, non-prescription personal care items.

General Merchandise e.g. Toys, books, decor, kitchenware.

The following supplies are strictly excluded from the zero-rated application on that Day –

(a)Services of any kind, including tourism and hospitality services

(b)Tobacco products e.g. cigarettes, cigars and loose tobacco

(c)Firearms and ammunition

(d)Motor vehicles

The sale of prepared meals and beverages at hotels, guesthouses, restaurants and other similar establishments are excluded as being eligible for the VAT Zero-Rated/VAT-Free Day.