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Wednesday, January 04, 2006 

Tax Levy Hits Dominican Republic

Santo Domingo, Jan 2 (Prensa Latina) Dominican Republic began 2006 with the results of a controversial fiscal reform approved by Congress in December: a tax affecting over 200 products.

A levy on the Transfer of Services and Industrial Productions (ITBIS) means an automatic 16 percent hike on products that were tax free.

Chamber of Commerce Commercial Companies chair Ivan de Jesus Garcia said the tax affects herring, cod and imported frozen fish, as well as such basics as salt, toothpaste, washing and dish soap, detergents, vinegar, tomato paste, matches, soups and beans.

Garcia said little information has reached the population and called Chamber members to reach out to consumers so "they do not blame commerce for the tax."

The business sector is still under a cloud for a 30 percent tax forced on supermarkets and produce wholesalers that is leaving them without liquidity.


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