Sales Tax Increase Set for July

March 13, 2010
By pa.di.

The National Assembly has approved the Tax Reforms with 40 in favor and 15 against.

As a result, the sales tax will increase from 5 percent to 7 percent as of July this year.  Fondas and fast food restaurants will be exempt as long as the establishments do not sell liquor, as will medicines, medical food and disposable diapers, reports La Critica. The tax will however increase on  pre-paid cell phone cards, among other things.

The $200 million that the government expects to amass around $2 million from the 2% increase that will be dedicated to social programs like the $20-per student-per-month scholarships for public school students.

One Response to “ Sales Tax Increase Set for July ”

  1. Burt McKinley on March 15, 2010 at 12:10 pm

    Considering the raging obesity epidemic, as mentioned in a current article, it seems utterly counterproductive, counterintuitive, and illogical that fondas and fast food restaurants be exempt from sales tax. Shouldn’t those foodstuffs responsible for the obesity epidemic be heavily taxed while fruits and vegetables remain exempt? The problem being dealt with here is the fried meat and soda three times a day diet that seems to have captivated the vast majority of inhabitants in this country. What’s the deal? And why doesn’t this news site have an Ask Abbey column?