Countdown to Personal Property and Service Transfer Tax Increase

On July 1, the government’s fiscal reform goes into effect and shoppers will pay two percent more in personal property and service transfer tax.

Opponents to the reform have argued that the new seven percent tax will increase the economic burden of basic goods and services and increase inflation, but the Ministry of Economy and Finance says the increase is nominal and that a greater impact will be felt in the sales prices of luxury goods.

The government expects to generate an additional $220 to $240 million a year through the increase.