Tax reform could backfire, Foreign Investments warn
SANTO DOMINGO.- The Association (ASIEX) on Sunday warned that the government’s tax reform package is a serious threat to industry and if approved could hobble new flows of capital and of jobs, and hinder access to technology.
It said the proposed 10% capital gains tax would be in addition to the current 29% tax on corporate income.
ASIEX cautions that it’s a tax formula which would lead to double taxation, raising the income tax to 36.1%, and “totally contrary to the Government interest to attract S$3.5 billion in new foreign investment and create 132,000 jobs, as the Exports and Investments Center (CEI-RD) proposed.
The ASIEX also cautions that the productive sector’s competitiveness would suffer if the new tax package materializes, noting that it can backfire if it seeks too much revenue.
It adds that the a healthy society requires that, prior to any new taxes, the government render accounts for public spending.
Source: Dominican Today
Category: DR News |