NewsWhore
05-30-2007, 03:50 PM
President Leonel Fernandez announced his administration would be flexible and would accept a reduction in tax tariffs. President Fernandez acknowledged that the January 2007 tax reform has produced on average RD$400 million more than the government had budgeted. The statesman explained that the NCF bill crosschecking system implemented this year by the Tax Department (DGII) was bearing fruit and had considerably reduced tax evasion. The business sector had forecast the government would receive a windfall from the registered tax invoices and that the increase in taxes as proposed and passed by the government was not necessary.
President Fernandez made the announcement during last last night's 22-minute speech where the focus was primarily on the SFS universal health plan.
The President proposed a tax amnesty for people who had not filed taxes, a reduction on corporate taxes, and taxes on beer and cigarettes. Fernandez said that he would send a bill to the Congress within the next few days aimed at reducing taxes on alcohol by 50% and on cigarettes by 80%. In addition, taxes on income, tax on corporations, individuals and businesses owned by a single person would be reduced from 29% to 25% as part of a gradual tax reduction program. Referring to the tax amnesty portion of the legislation, the President said that if this year's taxes were paid, all previous taxes owed would be pardoned.
Economy and Planning Minister Temistocles Montas had advocated for a reduction of taxes on alcohol and cigarettes, arguing that the taxes levied in January had resulted in a considerable reduction in sales, which translated into RD$6 billion less in government revenues. A reduction in the tax percentage is now expected to spur increased sales of beer and cigarettes, and produce more tax revenues for the government.
More... (http://www.dr1.com/index.html#2)
President Fernandez made the announcement during last last night's 22-minute speech where the focus was primarily on the SFS universal health plan.
The President proposed a tax amnesty for people who had not filed taxes, a reduction on corporate taxes, and taxes on beer and cigarettes. Fernandez said that he would send a bill to the Congress within the next few days aimed at reducing taxes on alcohol by 50% and on cigarettes by 80%. In addition, taxes on income, tax on corporations, individuals and businesses owned by a single person would be reduced from 29% to 25% as part of a gradual tax reduction program. Referring to the tax amnesty portion of the legislation, the President said that if this year's taxes were paid, all previous taxes owed would be pardoned.
Economy and Planning Minister Temistocles Montas had advocated for a reduction of taxes on alcohol and cigarettes, arguing that the taxes levied in January had resulted in a considerable reduction in sales, which translated into RD$6 billion less in government revenues. A reduction in the tax percentage is now expected to spur increased sales of beer and cigarettes, and produce more tax revenues for the government.
More... (http://www.dr1.com/index.html#2)