💡 An unprecedented measure to counter high living costs in Martinique
It’s official! Since March 1st, more than 6,000 essential products are exempt from VAT in Martinique. A strong initiative to fight against high living costs that severely impact households’ purchasing power. But concretely, what are the effects on your shopping basket? Which products are affected? We explain everything!
👁️ High living costs in Martinique: a pressing problem
If you live in Martinique, you already know: food and consumer goods prices are 40% higher than in mainland France according to INSEE. This difference is explained by import costs and various local taxes.
As a consequence? Each month, families see their budget explode to acquire basic products. In the face of this reality, public demands have continued to grow, prompting the State to respond with a full VAT exemption on essential goods.
📝 Which products are covered by the VAT exemption?
This VAT exemption applies to a wide range of everyday products:
- 🌾 Basic food products: rice, pasta, flour, sugar, milk, canned goods…
- 🎓 School supplies: notebooks, pens, essential supplies.
- 🧒🏼 Baby products: diapers, infant formula, baby food jars.
- 🩹 Hygiene and cleaning products: soap, toothpaste, shampoo, laundry detergent.
📊 Objective: Reduce the cost of living for the most modest households.
🏆 A real relief for consumers!
The first reactions have not been long in coming. Marie, a mother living in Fort-de-France, shares her experience:
“I noticed the difference on my last trip to the supermarket! Some products I regularly bought have dropped in price. It’s a real relief for my budget.”
This drop is expected across all large stores and local shops, although retailers still need to adjust their pricing systems.
🔄 A compensation on other products
While this removal of VAT is good news, some products have seen their rate increase to 8.5%. This includes:
- 💻 Computer hardware and accessories.
- 📱 High-end smartphones.
However, the State has specified that laptops and entry-level phones will remain exempt to ensure access to these devices for modest households and students.
🎯 An effective measure against high living costs?
This reform is a response to a popular mobilization that has lasted for years. But for many, it doesn’t solve the underlying problem. Some economists remind us that other levers need to be activated for a sustainable reduction in prices in Martinique, including:
- A revamp of the octroi de mer (local tax on imports).
- A better control of distributor margins.
- The development of local production to reduce dependency on imports.
📢 We value your opinion!
What do you think of this measure? Have you already noticed a drop in prices in stores? Share your experience in the comments and spread this info around!
Céline, a passionate blogger about news and travel, I decode the trends that make the world buzz. Whether it’s exploring hidden corners of the planet or analyzing the hottest topics in the news, I share my discoveries here with a curious and authentic perspective. Join me to travel through words and ideas!
