French Assembly Approves VAT Exemptions to Combat High Living Costs in Martinique and Guadeloupe

The legislative measure aims to reduce prices by 20% on essential goods amid ongoing social tensions in the French Antilles.

The VAT exemption applies to a list of essential goods in Martinique and Guadeloupe, effective until the end of 2027.
The measure is part of a government amendment to the 2025 budget, following an agreement made in mid-October.
In exchange, some currently exempt products, like electronics, will be subject to VAT.
The decision comes amid protests against high living costs, with the RPPRAC collective deeming the agreement insufficient.
Additional proposed amendments could expand VAT exemptions to more products and regions, but their adoption is uncertain.