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View Full Version : Fiscal reform reformed



NewsWhore
01-04-2007, 04:50 PM
The Senate has approved, in one reading, the elimination of a selective tax on the importation of vehicles (Bill 495-06 for the Fiscal Reform) to comply with DR-CAFTA. All new legislation needs to be harmonized with DR-CAFTA.
PLD Senator Charlie Mariotti explained that the change eliminates the additional 10, 20 or 30% tax the government had incorporated on vehicle imports. The fiscal reform had originally called for buyers to pay 3% of the ISC on the cost of a vehicle. If a vehicle costs between US$10,000 and US$20,000 it is subject to a 10% tax, one costing between US$20,000 and US$30,000 a 20% tax, and one costing between US$30,000 and US$40,000 a 30% tax. El Caribe reports that government will collect RD$730 million less as a result of this move. One note says that the government strategy would be to adjust vehicle base values to compensate for removing this tax. Listin Diario reports that legislation prohibiting the importation of vehicles over five years old and cars weighing over five tons was also approved. In addition, used home appliances are also subject to an import ban, except in the case of personal effects belonging to Dominicans and foreigners moving to the DR.

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