Some businesses upbeat but looming higher prices in 2014 cast doubts

Santo Domingo.- Although some businesses feel upbeat and hope the economy performs better next year than in 2013, one this is sure, the phased-in ITBIS tax increases are coming, and will push prices upward on several consumer products, all of it a result of last year’s tax package.

Among the products whose prices might climb three percentage pointsd starting January 1 figure sugar, coffee, yogurt, chocolate, margarine and cooking oil.

The phased in ITBIS planned for 2014 will mean higher prices on those products which hadn’t paid it before, from a low of 8% to 11% prior to 2012.

Prices on products such as alcoholic beverages are also expected to climb next year, from the selective tax on the per-liter consumption.

In that regard the 2014 tax reform charged RD$ 514.1 per each liter of absolute alcohol in alcoholic malts, beers and wine, from the current RD$489, while for vodka, rum and whiskey it climbs from RD$418 to RD$457.3.

Law 253-12, in addition to setting the amounts on alcoholic beverages and beer, must also pay a 10% selective consumption tax in addition to their price at the checkout line.