The price of some products of the family basket will rise with the VAT hike

Image: El Universo

Appliances, cleaning supplies, clothing, leisure, laundry and maintenance … are some of the product groups that will be affected by the increase in the value added tax (VAT) from 12% to 14% and are part of 39 products of the basic food basket.

This increase is provided in the Solidarity and Co-responsability bill proposed to counteract the effects of the earthquake, which is being processed in the National Assembly. The bill will be discussed in a second debate tomorrow from 08:45.

Thus, according to experts, the VAT increase will bring two effects on the daily economy of citizens. On the one hand a rise of prices throughout the supply chain will be registered, shrinking the economy.

Source: http://www.eluniverso.com/noticias/2016/05/11/nota/5572719/algunos-productos-canasta-subiran-iva