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You are paying even more than the 30% tax on your telecom bill

If you look at your telephone bill, including Internet and cable services, you will notice that there are three different charges (taxes) on your phone and Internet and cable billing totals: 18% for the Itbis (value added tax); 10% for the Selective Consumer Tax (the luxury tax) and 2% for the telecommunications development tax.

We’re now finding out there is a legislative proposal to increase the telecommunications tax. The plan is to finance the National Emergency System 911 with the additional to the telecommunication tax.

The legislative initiative seeks to have service providers pay the government US$0.02 or its equivalent in Dominican pesos, according to the exchange rate established by the Central Bank of the Dominican Republic, for each minute of voice communication via the local providers. The legislation also proposes another fixed amount of US $0.0025 for each international text message that ends up on Dominican telecommunications networks.

According to experts, the taxes charged for telecommunications in this country are already the highest in the region. According to the ECLAC report, “The State of Broadband in Latin America and the Caribbean 2016,” the country is below average with regard to broadband access and much of this can be blamed on the high cost of the service. Regarding access to fixed broadband communication, the Dominican Republic is among the countries with the least penetration, in the neighborhood of 5% to 15% of the population in 2015. With regard to mobile wideband communication the numbers say that less than 50% of the population have access placing the country only above Haiti, Honduras and French Guiana.

In March 2017, of the approximately 10,000,000 telephone lines, 66% belong to prepaid mobile phones. Estimates place the number of Internet accounts and the Dominican Republic at about 6.2 million.

Source: DR1

May 13, 2017

Category: DR News |

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Last updated December 14, 2017 at 10:29 PM
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