Dominican Government unveils major tax increases
Santo Domingo.- The sales tax would climb from16% to 18% except for basic services and staples, and “informal activities” would also be taxed, according to the government’s proposed Fiscal Reform disclosed today.
With the new tax reform pending approval in Congress, the tax burden will increase from the current 13% to 15%; the public payroll and wage increases would be frozen starting next year.
The fiscal deficit, currently 6.4% of the GDP, or RD$170.0 billion (US$4.3 billion) is expected to rise to 8% by year end.
In the tax reform bill, to be submitted to Congress in the next few days, the duty free zones would also be taxed 10%.
Economy minister Temistocles Montas made the announcement in a National Palace press conference, held after the tax reform bill was approved in today’s Social Economic Council meeting, headed by president Danilo Medina.
The government’s proposal would also increase the tax on alcoholic beverages from 7.5% to 15% gradually over three years.
Source: Dominican Today
Category: DR News |