Senate passes tax plan

[NewsWhore]

The Senate of the Dominican Republic passed the President's tax correction proposals last night with some variations on the original suggestions. With neither the PRD nor the PRSC senators present, the PLD-dominated Senate passed the proposals quite easily after making some alterations to the taxes on fuels, alcoholic beverages and gambling. Diesel fuel will be subject to an additional RD$3 per gallon, regular gasoline will be taxed an additional RD$5 and premium gasoline will get a RD$5 tax break. According to El Caribe, the senators modified Article 38 of the proposal and decided to maintain the current tax status of businesses located along the Dominican-Haitian frontier. These are the industrial free zones covered under Law 28-01. The new proposals also call for a RD$3,000 payment for vehicles between 5 and 10 years old, as a sort of "right to drive" tax. This tax will be adjusted on a yearly basis. Vehicles over ten years of age will pay RD$1,500. Betting establishments will have to pay a 20% tax, also adjustable for inflation, and lottery sales points will pay a RD$31,000 tax. Winnings will be taxed at a rate of 15%. Raw materials for the production and manufacture of medicines for human and animal use will be tax-exempt, as will the transport sector. Alcoholic beverages will pay a 15% ad-valorem tax and cigarettes will pay a 100% ad valorem tax. The bill now moves on to the PLD-dominated Chamber of Deputies.

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