2006News

DGII admits price hikes

The director general of the Department of Taxes (DGII), Juan Hernandez admitted to reporters that some of the products that make up the basic family food basket have increased in price as a result of the application of the new tax reform package. He added that he felt that this trend would be reversed as the exchange commission tax was reduced and eliminated. However, members of several national traders associations have issued a statement saying that the government is the sole responsible agent for the higher prices of these mass consumption articles. The Agriculture Minister Amilcar Romero called the higher prices “pure price gouging” on the part of merchants looking to bank more money. The president of the Santo Domingo Wholesalers Association told reporters that higher prices were the result of a higher exchange rate, higher electricity costs and higher labor costs in 2006.