Price of bread ‘could jump’ up to 20% on nixed tax breaks
Santo Domingo.- The price of a bread bun could jump as much as 20% unless the government rolls back the elimination of tax breaks on food items as stipulated in the fiscal reform of 2010.
The warning came Monday from Francisco Capellan, president of the medium and small bakeries grouped in the UMPHI), who announced a national gathering to review the recent jumps in all ingredients used to bake bread, adding that it’s up to the government to decide on an increase of all flour products.
He said the amendment of the Pro-Industry Law led to a higher exchange rate and increased raw materials and ingredients, which he affirms would also raise the price of bread slightly.
Capellan added that higher prices on sugar, oil, yeast, shortening and margarine, previously exempt from ITEBIS tax, together with the recent increase in flour, have becomes "pure cost" for bakeries.