NewsWhore
05-08-2012, 03:00 PM
A 16% to 18% increase in ITBIS (value-added tax) and a reduction of tax-exempted categories could be coming after the 20 May 2012 presidential election, as leaked to the press. The IMF is requiring the government to balance its books, and these would be some options for filling the gaps.
Journalist Soila Paniagua of Hoy newspaper writes that the IMF delivered a report called "Tax measures for the fiscal adjustments" to the government in December 2011. The idea behind the recommendations is to reduce the fiscal burden from 3.5% to 2.5% by January 2013. Suggestions also include reduced spending, including adjustments in the electricity sector and an additional tax increase.
On the elimination of incentives, the IMF report said that "this is a job that has been long delayed and needs to be started now." The report recommends a 5% increase in taxes on rentals, payment for services and any other type of income, plus the elimination of the exemption on interests received. The proposal calls for eliminating the exemptions for free zone companies, a 20% consumer tax on alcohol, a 40% tax on cigarettes, a 3% increase (up to 16%) in the tax on fuels and the creation of a new tax for hotels and motels. In addition the IMF wants the government to tax vehicles by up to 40% and eliminate the exemption for cash withdrawals from ATMs, and increase the tax on housing.
www.hoy.com.do/el-pais/2012/5/8/426539/FMI-propone-subir-ITBIS-eliminar-incentivos (http://www.hoy.com.do/el-pais/2012/5/8/426539/FMI-propone-subir-ITBIS-eliminar-incentivos)
More... (http://www.dr1.com/index.html#3)
Journalist Soila Paniagua of Hoy newspaper writes that the IMF delivered a report called "Tax measures for the fiscal adjustments" to the government in December 2011. The idea behind the recommendations is to reduce the fiscal burden from 3.5% to 2.5% by January 2013. Suggestions also include reduced spending, including adjustments in the electricity sector and an additional tax increase.
On the elimination of incentives, the IMF report said that "this is a job that has been long delayed and needs to be started now." The report recommends a 5% increase in taxes on rentals, payment for services and any other type of income, plus the elimination of the exemption on interests received. The proposal calls for eliminating the exemptions for free zone companies, a 20% consumer tax on alcohol, a 40% tax on cigarettes, a 3% increase (up to 16%) in the tax on fuels and the creation of a new tax for hotels and motels. In addition the IMF wants the government to tax vehicles by up to 40% and eliminate the exemption for cash withdrawals from ATMs, and increase the tax on housing.
www.hoy.com.do/el-pais/2012/5/8/426539/FMI-propone-subir-ITBIS-eliminar-incentivos (http://www.hoy.com.do/el-pais/2012/5/8/426539/FMI-propone-subir-ITBIS-eliminar-incentivos)
More... (http://www.dr1.com/index.html#3)