2005News

Basic products to remain VAT-exempt

Cooking oil, coffee, sugar, detergents, pasta, sanitary towels and disposable diapers are among a group of products to which VAT (ITBIS) will not be applied, as agreed between the government’s economic team in charge of negotiating the tax reform and the Chamber of Deputies Finance Commission. Also excluded are supplies used by agribusiness in the breeding of poultry and pigs, as reported by Diario Libre. The agreement was reached on Tuesday afternoon during a meeting at the Tax Department, according to the Finance Commission president Marino Collante. Still to be determined is how much less the government will collect after these exclusions.