Government delays sales tax changes

UNDER PRESSURE from business groups The Ministry of Economy and Finance decided to defer changes to the collection of the Itbms tax until January.

The changes were intended to stop  tax evasion in the business world, but business organizarions said more time was needed.

The decision was published Friday, Oct.30 in the Government Gazette and carried the signatures of President Juan Carlos Varela and Minister of Economy and Finance Dulcidio De la Guardia.

The measure was originally planned to go into effect Nov. 1. But it was delayed due to complaints from the business owners who would be impacted.

The change will require some retailers and wholesalers to split the payment of the 7 percent tax equally.