Tax hike will only work if economy is healthy
Santo Domingo.- Tax specialist José Segura says that Danilo Medina’s government may be able to raise an additional RD$13 billion by the application of the sales tax (ITBIS) during 2013, as has been proposed, providing the economic conditions remain favorable.
He said that if the country’s economic situation deteriorates instead of improving, the government would not be able to raise the projected sum through ITBIS.
The products that will be subject to 8% ITBIS as of January are yogurt, coffee, sugar, cacao, chocolate, butter and edible oils. These products will go up by 3% in 2014 and 2% in 2015.
He said that products that were already taxed would be subject to 18% instead of 16% as of next week and that the number of taxed products in the country in 2013 would be around 65 to 70%.
“We are below other countries with which the Dominican Republic has signed free trade agreements’, said Segura.
The ITBIS increase and the extension of its base are some of the measures included in the fiscal reform.
ITBIS collections totaled RD$89 billion in 2011.
In January a selective tax will also be introduced for alcoholic drinks and cigarettes.
Category: DR News |