2005News

New taxes on foodstuffs

Law 557-05 that deals with the recent tax reform will kick in on the first of January, and housewives will be facing higher prices for some very important items. Salt cod, salted herring, matches and even toothpaste will go up at least 16% with the VAT tax that will be applied for the first time. Also on the list are tomato paste, vinegar, bouillon concentrate (“sopitas”), laundry soap and all pasta products. Luxury items like shrimp, lobster and other shellfish are also to be taxed at the new 16% rate. The new taxes will also be applied to agricultural supplies such as fertilizers and their components, as well as educational materials for pre-university study.