Mario Mendez, the economic editor for Hoy newspaper, reported on Saturday that the government is studying the possibility of adding new taxes or increasing the reach of existing ones. According to Mendez, if the new taxes are approved, many items will become unaffordable to most consumers, and this will give rise to an increase in contraband. Among the new proposals will be a 5% tax on hard currencies produced by the export and tourist sectors and an expanded ITBIS (value-added tax) that would be increased to 15% and applied to a broader spectrum of items. Also being reviewed are the taxes on electrical appliances, motor vehicles, tobacco and alcohol products. Additionally, there is a proposal to increase personal and corporate income tax to 30%, up from the current 25%. Other proposals include a 10% tax on savings. Talking to economists and business leaders, Mendez reports that the end result of the proposals will be the further erosion of the peso’s buying power and, ultimately, a major recession.