Tax reform need not be feared. There could be something positive to come out of it for the middle class that traditionally has been asked to pick up the tab for social services to the poor and government wasteful spending. The Regional Center for Sustainable Economic Strategies (CREES) says that there is no reason to panic over the imminent tax reform that “everyone” is talking about. In fact, according to economist Miguel Collado of Crees, taxes could even go down. His own organization is proposing a drop in taxes as are many others.
The proposals are designed to bring some equilibrium to the economy, provide funds for sustainable development, and create more jobs. Crees proposes that the despised 18% value-added tax known as the ITBIS be lowered to just 10%, but the base be expanded to almost everything, including most basic staples currently not taxed.
Crees keeps out of the proposal medicines and in the service sector, neither health, education, nor electricity will be taxed by the ITBIS as at present. The ITBIS value-added tax has a cascade effect which has a detrimental effect on consumers since a product is taxed from its origin to the final consumer,
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Crees
Listin Diario
27 May 2024