Supermarket shoppers now need an estimated extra RD$2,000 or RD$3,000 in order to make their bi-weekly purchases. The fiscal reform (which means “more taxes”) has entered into full force after a grace period during which some supermarkets decided to absorb the 2% and 8% increases in the value added tax (ITBIS) ended this weekend.
Reporters who visited supermarkets with lots of middle class customers found that the discontent was palpable. Some were resigned, others, such as Miriam Rodriguez, used smart consumption techniques, like looking out for specials and daily offers. Nevertheless, others simply chose to stop buying. One housewife, Mercedes Hernandez, told reporters that she had reduced her purchases of fish, meat and milk, as she left a Megacentro supermarket.
Products in the basic food basket that had not been taxed up till now, including coffee, chocolate, cooking oil and yogurt, are now taxed at 8% ITBIS. This tax amount will gradually be increased to 16% in 2016. In the meantime, the products or articles that paid 16% before are now paying 18%.