According to Ivan Garcia, president of the Dominican Federation of Merchants, the price increases are justified. He complained that the Customs Department is still charging the commission on more than 200 items. He said that while government officers are talking about the elimination of the 13% exchange commission on items that now pay a 16% ITBIS rate, Customs is still applying the duty on imported goods, as reported in Diario Libre. He also said that more than 200 products have been affected because several items refer to categories, not single products. He mentioned that one of the categories now subject to ITBIS is “children’s food products and other cereals and other children’s food preparations,” a category that he says covers many products.
Regarding the error on pasta now being taxed with ITBIS, he said that the reality is that the item continues to be in the fiscal reform, even if the authorities say that it was a mistake.
Garcia asked the authorities to issue a Monetary Board resolution to eliminate the exchange commission, as it was created by such a resolution.
He attributed the price increases to the depreciation of the peso, that was going for a high RD$35-US$1 at the start of the year.
The tax reform has also brought an increase in luxury tax on select items and an increase in the tax on diesel fuel.