The Assembly approves VAT exemptions in Martinique and Guadeloupe to combat the high cost of living

Concrete action for the fight against the high cost of living in the Antilles. The National Assembly adopted on Saturday evening at first reading a provision proposed by the government to exempt from VAT, in Martinique and Guadeloupe, a list of “first necessity” products, translation of an agreement concluded on October 16 in Fort- from-France.

The list of products benefiting from this exemption, until the end of 2027, will be specified by decree. In return, other products, which are currently exempt from VAT in these departments – such as electronic or nautical equipment – ​​should in the future be subject to this tax, the MP (PS) for Martinique Béatrice explained to AFP. Bellay.

This provision, included in a government amendment to the 2025 budget, is the legislative transcription of the agreement concluded in mid-October in Martinique between the State and major retail players to reduce prices by “20% on average” in this overseas department, scene since September of a mobilization against the high cost of living.

An agreement deemed “insufficient”

Before the vote, the deputies adopted two other “better” amendments than that of the government, of which there is no guarantee that they will appear in the final copy of the text, which is only just beginning its parliamentary shuttle.

In Martinique, the mobilization launched at the beginning of September against the high cost of living gave rise to strong tensions which were not entirely calmed by the agreement of October 16. This was deemed insufficient by the collective Rally for the Protection of Afro-Caribbean Peoples and Resources (RPPRAC), at the origin of the movement.