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Basic products will go up in price in January

SANTO DOMINGO. The effects of the 2012 tax reform will continue to be felt in the population and especially among the poorest people starting in January 2015. They will see their already limited budgets reduced even further, due to the increase in the prices that some staples will experience because of the gradual increase in the application of the Tax on the Transfer of Goods and Services (ITBIS) on staples.

Among the products that will receive an increase of two percentage points in their prices starting on 1 January 2015, are sugar, coffee, yogurt, chocolate, margarine and oil, which stand out as they go from paying an 11% tax to a 13% ITBIS tax.

Increases in prices that those products will receive is explained because it is part of the planning that the scaled increase of the ITBIS, which covered those products that before 2012 did not pay this tax and began with 8% in 2013 and will reach 16% in 2016.

Several persons upon being consulted by the Diario Libre said separately that the people cannot resist more increases in the prices of food due to the fact that salaries are very low in the country.

“Another increase in prices in January? This is very bad. They’re expensive now, you can imagine another increase. They better be thinking of increasing the salaries,” said Escarle Agramonte, a private sector employee who was found yesterday shopping in one of the supermarkets of the capital.

In the meantime, as several sectors, public as well as private, as well as the pensioners are asking for in a general increase in salaries, there is still nothing sure with respect to this demand, but what is beyond doubt is that in January there will be an increase of prices through the ITBIS because this increase is contemplated in the Law for the Strengthening of the Collection Capacity of the State for Fiscal Sustainability and Sustainable Development.

“This will be so that the poor finish getting screwed,” Teresa Galvan said with energy. She is another private employee who said that she has three children and that her current budget is not enough to even buy toilet paper.

In the same way, Maritza Nuñez expressed her rejection of the next increase in prices which the scaled ITBIS will cause in 2015.

Other products, such as alcoholic beverages, will also received price increases, as the selective consumer tax for each liter of pure alcohol will increase for next year.

In this sense, the latest tax reform established that for 2015, malt beers (except malt extract) and wine from fresh grapes will pay a tax of RD $540.10 for each liter of pure alcohol, and at the present time they are paying RD $514.10; in the meantime vodka, rum and whiskey will go from RD $457.3 to RD $498.4.

According to Law 253 – 12, in addition to the amounts established for alcoholic beverages and beers, they should also pay a selective consumer tax of 10% on the retail price of these goods.

In addition the legislation established that these amounts of the selective consumer tax will be adjusted every three months starting in 2017 according to the inflation rate from the Central Bank.

Cigarettes

With respect to cigarettes which contain tobacco, the Law for the Strengthening of the Collection Capacity of the State for the Fiscal Sustainability also set the amount of the selective consumer tax to be paid for a pack of 20 cigarettes at RD $50 in 2015 and not RD $45 such as is paid at the present time. This small pack of 10 cigarettes will go from paying RD $22.50 at the present time to paying RD $25 starting in January 2015.

Source: DiarioLibre

Category: DR News |

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Last updated December 4, 2016 at 1:52 AM
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