SD. The proposal for tax reform presented yesterday by President Danilo Medina to the Economic and Social Council contains a list of 276 food products, such as whole wheat bread, corn, pork, live chickens, beef tripe, pork tongue, beef kidneys, intestinal tissues, sausage, tilapia and other products that will have to pay the Tax on the Transfer of Industrialized Goods and Services (ITBIS-the Dominican VAT tax).
This tax will be gradually during the four year period and will begin with 10% in 2013; 12% in 2014; 14% in 2015 and beginning in 2016, 16%.
The planned fiscal reform that was presented also contains a list of 470 products of the basic family basket that will continue to be tax free, such as rice, beans, normal salami, milk, avocados, mamay, star fruit, coconut water. Also exempt are medicinal products that include vitamins A, B and C and blackboards. The proposal now has to go to the National Congress.
And, if that was not enough....
According to the proposal for fiscal reform, there will be a 10% tax in 2013, which will grow to 16% in 2016 on products such as whole wheat bread, telera Christmas bread, bread crumbs, pita bread, sandwich bread, Hot Dog buns, cornmeal sweets, cassava, churros, butter cookies, and other products. The tax will be applied to oatmeal, wheat, and corn and popcorn.
Cereals and meat products
The ITBIS will be applied to cereals and derivatives such as pastas, and every imaginable cut of meat from every animal, including goat, sheep, pigs, poultry and beef. The list includes sub-products such a processed meat in every variety.
Fish and shellfish
The list for the application of ITBIS includes every type of fish and shell fish on the market, including tuna, sardines and all frozen fish. Also included are margarines and lard and other types of edible fat and even popsicles.
The reform also suggests that regular salami, the special salami, the "pica-pica"(spicy canned sardines), whole milk, fat-free milk, semi-fat milk, eggs, some fruits, the plantain family, pigeon peas, and beans, onions, carrots, Chinese green beans, leaf lettuce, kindling, pine heart, coal, turpentine, kerosene, solar panels, anis, water and garlic will not pay ITBIS.