Starting today consumers will feel ITBIS increase
SD. Although many establishments did not open their doors yesterday because of the New Year’s festivities, the increase from 8% to 11% in the Tax on the Transfer of Industrialized Goods and Services (ITBIS) is now in effect. This tax increase is on the products that began to be subjected to this tax last year under the latest tax reform. This increase in the ITBIS calls for consumers of products such as coffee, sugar, chocolate, yogurt, oils, butter and others, to readjust their budgets due to the three percent increase in this tax on these items. This tax is being applied by the commercial establishments under the mandate of this law.
With the aim of reducing the impact of this increase at the beginning of the year, some of the major supermarkets, a mainly those that have branches throughout the country, announced last week that they would absorb this tax increase from 8% to 11% for one month.
Nonetheless, there are a great number of establishments that will apply the scaled increase, as ordered by the new fiscal law, which will cause an increase in the prices of some of the products in the basic family food basket: sugar, yogurt, butter, coffee and cooking oil.
In order to get an idea, it was explained that with the increase from 8% to 11% in the ITBIS for some products the increases will represent less than a peso for the retail sales. A small envelope of coffee which as of yesterday was sold for RD$15, will go up RD$0.40 with the application of the ITBIS. In the meantime, sugar will go up between 55 and 70 cents from current prices of RD$20/lb for dark sugar and RD$25/lb for refined.
Many of the supermarkets which announced that they would absorb this increase in the ITBIS during this month of January have the majority of their establishments in the capital, and some have branches in several provinces.
Among the businesses that will absorb the ITBIS increase are the Bravo Supermarket chain, as well as Nacional and Jumbo, which belong to the CCN group and La Sirena, Super Pola and Aprezio of the Ramos Group.
According to the president of the National Organization of Commercial Companies (ONEC), Ernesto Martinez, the decision not to apply the ITBIS increase on basic consumer items in January was take individually by these establishments.
Alcohol will go up
The increase in the prices that alcoholic products will receive is due to the fact that for this year the scaled ITBIS was planned for those items that were not covered by this tax before 2012. The tax will go from 8% to 11% in 2014 and to 13% in 2015 and to 16% in 2016. However, in addition, alcoholic beverages will also get a tax hike for each liter of pure alcohol. In this sense, malt beverages (except Malt Extracts) and wine from fresh grapes will pay a tax of RD$514.10 for each liter of pure alcohol rather than the RD$489 that they paid in 2013.
Category: DR News |