Yesterday, the government explained that the exemption of the 13% exchange rate commission that came into effect on 1 January 2006 was applied to 3,904 tariff items, among which are included 287 tariff lines that are also exempt from the 16% VAT (ITBIS) tax. According to Diario Libre, these include raw materials for the agribusiness sector and for the manufacturing of oils, food for babies and the elderly, as well as animal feed. According to the Tax and Customs Departments, these items should be selling for prices lower than last year, or remain at the same price. The Tax Department published a list of items affected by VAT (ITBIS) today, specifying which items are exempt from the exchange rate commission. The government warned they will act against what they have called “a wave of speculation”.
During an interview at Listin Diario, the Directors of the Tax Department, Juan Hernandez, and the Customs Department, Miguel Cocco, stated that of the 6,802 items on the product list of the tariff universe, 3,904 (57.4%) do not pay the exchange rate commission, 2,898 pay the commission, and 287 products were exempt of both the commission and VAT (ITBIS).