Dominicans get smorgasbord of new taxes for new year
Santo Domingo.- Starting today Wednesday Dominican Republic will enforce a new system with its biggest tax reform ever, covering three sources; on income, consumption and wealth, an increase in excise taxes, especially alcoholic beverages and tobacco.
The retail chain La Sirena, quoted by elnacional.com.do, revealed that starting today the ITBIS (VAT) tax will raise prices on 652 items on its catalog, with a 8 percent VAT tax for the first time.
Among the items cited figure cooking oils, sugar, coffee, sodas, butter, margarine and yogurt.
It said 11,039 other items will climb as high as 18 percent, while, another 3,504 items remain exempt from ITBIS.
Several major retailers, including Grupo Ramos; supermarkets Bravo, Delta Comercial and Bon Ice Cream have announced that during at least during January they’ll not apply the VAT to goods and services offered to the public.
From the moment Congress adopted of the reform some of the new taxes came into effect, such as the two dollars per gallon of gasoline and diesel, to create a fund to finance the reorganization of traffic.
Among the reform’s innovations is a tax on carbon dioxide (CO2) emissions to be levied according to engine power and emissions, according to miles driven, on new vehicles entering the country.
It also created a 10 percent tax on interest paid by financial intermediaries to depositors, which took effect last November.
Also applied is an annual 12,000 peso tax on any business which makes purchases of 50,000 pesos or more monthly.
The free zones will pay 3.5% on local sales, and 25% on lottery prizes or winnings.
The reform applies a 1% tax on all properties whose consolidated worth is of RD$6.5 million or higher, and also creates a 1% tax on vehicles to renew their license plate, which starts in August.
Category: DR News |