2004News

Tax increase may prompt restaurant closures

The president of the National Association of Restaurants (Asonares), Elizabeth Scheker, urged senators not to increase the ITBIS (VAT) tax from 12 to 16% as part of the proposed fiscal reform package. She said the increase will mean patrons will have to pay a minimum of 26% on what they consume, and this is without including the additional 10% goods and service charge that is customary. Scheker fears the increase will considerably reduce the number of restaurant-goers, possibly affecting the business of around 1,000 restaurants that employ 100,000 people.