Government Announces New Measures to Ease Cost of Living

The Government of Montserrat has introduced two new fiscal measures aimed at reducing import costs and making construction more affordable for residents and businesses.

According to the Government’s Public Relations Officer Jenzil Skerritt, the changes, outlined in SRO 31 of 2025 and SRO 30 of 2025, will take effect from September 1, 2025 to March 31, 2028.

Reduced Duties and Taxes on Building Materials

Under SRO 31 of 2025 – Building Materials Duties & Tax Adjustment, customs duties and consumption tax on a wide range of construction essentials will be set at 5% duty and 5% consumption tax.

The relief covers materials such as cement, lumber, windows, doors, tiles, paint, electrical wiring, plumbing fixtures, and other commonly used items including wood, steel, aluminium, plastics, ceramics, and roofing products.

Adjustment to Customs Valuation

Through SRO 30 of 2025 – Customs Valuation Adjustment, the government has amended how the customs value of imported goods is calculated. For the three-year period, only 50% of transport costs and 50% of loading and handling charges will be added to the purchase price of goods, rather than the full amount.

This change reduces the customs value used to assess duties and taxes, effectively lowering overall import costs across a range of products.

Supporting Households and Businesses

Officials say both measures are part of ongoing efforts to ease the cost of living on Montserrat, particularly by making construction and imports more affordable. The government expects the initiatives to benefit households undertaking building projects as well as businesses managing operational expenses.

To ensure these savings are passed on to the public, Premier Reuben T. Meade stated during the July 2025 Legislative meeting that an audit team will be established to ensure compliance.