Fernando Garcia, of the Ferreteria Americana and the president of ONEC, which represents large department stores in the DR, told Hoy newspaper that the buying power of the population has been reduced by 40%. He said that despite the impact of the tax reform and the augmented ITBIS from 12% to 16% consumer item prices could remain at present levels. He explained that the appreciation of the Dominican peso, down from RD$47 to US$1 to US$35.50 yesterday, will make up for the new tax increases. He said that wage increases should be held off until next year, to give time for businesses and the government to attain a certain level of stability.