NewsWhore
06-22-2011, 06:20 PM
The National Council of Business rejected the increase of the income tax from 25% to 29% as approved by the Chamber of Deputies in a first reading. The bill was up for a second reading on Wednesday, 22 June. The president of the National Council of Business, Manuel Diez Cabral criticized the tax package calling it "a patch" that does not contribute to solve any of the in depth structural problems of the economy, as reported in Listin Diario.
Diario Libre reported that Conep president Manuel Diez Cabral said that "the Income Tax increase is being proposed at a time when they (Congress) said: "To raise the rate from 27% to 29% is self-defeating and damaging for the productive sectors," he said. He argued that this decision affected business competitiveness.
The spokesman for the Haina Industrial Association warned that the approval of a 2.5% tax on gross sales on the local market will affect jobs in the industrial sector in Haina and San Cristobal. At the same time, the Dominican Traders Federation had hailed the initiative by the Chamber of Deputies to modify the proposal, since the original version placed a heavier burden on the lower middle class and the poorest sectors of society.
The spokesman for the American Chamber of Commerce said that the increased tax would further discourage business that would in increasing numbers relocate to Central America.
The government hopes that this legislation will enable it to collect RD$9.6 billion to cover the fiscal deficit and it projects collections to reach RD$4 billion with the increased income tax. The tax package was sent to Congress for the government to compensate for its fiscal deficit. The government argues the deficit is caused by rising fuel prices, but the private sector and civic society point to government wasteful spending.
A report in El Caribe says that the 29% tax will not be collected by the government until April 2012, which clashes with the urgency of the government to compensate for its fiscal deficit. Most companies in the Dominican Republic file taxes for the calendar year (January to December) in April of the next year.
More... (http://www.dr1.com/index.html#4)
Diario Libre reported that Conep president Manuel Diez Cabral said that "the Income Tax increase is being proposed at a time when they (Congress) said: "To raise the rate from 27% to 29% is self-defeating and damaging for the productive sectors," he said. He argued that this decision affected business competitiveness.
The spokesman for the Haina Industrial Association warned that the approval of a 2.5% tax on gross sales on the local market will affect jobs in the industrial sector in Haina and San Cristobal. At the same time, the Dominican Traders Federation had hailed the initiative by the Chamber of Deputies to modify the proposal, since the original version placed a heavier burden on the lower middle class and the poorest sectors of society.
The spokesman for the American Chamber of Commerce said that the increased tax would further discourage business that would in increasing numbers relocate to Central America.
The government hopes that this legislation will enable it to collect RD$9.6 billion to cover the fiscal deficit and it projects collections to reach RD$4 billion with the increased income tax. The tax package was sent to Congress for the government to compensate for its fiscal deficit. The government argues the deficit is caused by rising fuel prices, but the private sector and civic society point to government wasteful spending.
A report in El Caribe says that the 29% tax will not be collected by the government until April 2012, which clashes with the urgency of the government to compensate for its fiscal deficit. Most companies in the Dominican Republic file taxes for the calendar year (January to December) in April of the next year.
More... (http://www.dr1.com/index.html#4)