The end of the “grace period” that several supermarket chains gave consumers by absorbing the new taxes of the tax reform during the month of January, suggests that people have only seen the tip of the iceberg of the effects of the new taxes. As much as RD$2,000 and RD$3,000 now has to be added to the family budget for buying foods, and even more if they add the cost of services like cable television, which could be RD$200 more a month than last year. In the food sector, the price variation depends on consumption. However, if the purchase cost RD$389, then another RD$108.99 would have to be added in tax: 18% ITBIS plus 10% tip by law. Consumers who were consulted have still not reported increases in the price of water, electricity and schools, but they have noticed an increase in the cost of their gym fees. The government seeks to collect RD$46 billion through the tax reform approved at the end of last year and they hope to receive some RD$13 billion from ITBIS (the Tax on the Transfer of Industrialized Goods and Services) alone.
Beyond the basics, the cost of a more comfortable lifestyle has also undergone changes since the beginning of 2013. In the vehicle market, in January a 2006 Toyota Camry may be found at a used car dealer at RD$625,000, when last year it cost RD$550,000. A 2007 Honda Civic that cost RD$625,000 has gone up to RD$695,000. The difference of between RD$70,000 and RD$75,000 is due to the tax on CO2 emissions for the first license plate and other expenses resulting from the tax reform, according to Cesar de los Santos, the president of the National Vehicle Distributors Association (Anadive).