NewsWhore
06-18-2008, 05:50 PM
The Value Added Tax on fuels in the Dominican Republic is a progressive tax, meaning that as prices rise, the consumer pays more and more in tax money. During the first four months of the year, consumers paid 50% more compared to the same period last year, 2007. The VAT tax is different from a fixed tax that only changes through inflation and was set by the Hydrocarbon Law 112-00 at 7.4%. However, the 16% VAT tax is applied to the import price of petroleum, and as petroleum goes up, so does the amount of tax. In the first four months of 2007 the government collected RD$5.546 billion in taxes under Law 112-00. In 2008 the figure was RD$5.955 billion. With the 16% VAT tax the numbers are different. In 2007 the state raised RD$3.475 billion, according to Listin Diario, and in 2008 the sum was RD$5.1 billion, a 49.4% increase. What this means for consumers is that for 2008, some RD$6.9 billion will be paid in VAT taxes on fuels.
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More... (http://www.dr1.com/index.html#6)