Fernandez's tax reductions

[NewsWhore]

President Leonel Fernandez has submitted three bills to Congress aimed at reducing income tax, as well as the taxes on alcoholic beverages and tobacco, and granting amnesty to people or businesses that have not paid their ITBIS (VAT) tax to date. The new bill also proposes an income tax (ISR) exemption for businesses with sales up to RD$257,280. Companies that make between RD$257,280 and RD$385,920 would pay a 15% tax and the ones that make between RD$385,920 and RD$536,000 would pay a 20% tax. Companies selling above that level would be required to pay a 25% tax. Income tax for households would also be reduced from the current 29% rate to 25%. If the bill is passed, alcohol would then be subject to a 7.5% ad valorem tax, instead of the current 20% and tobacco products would pay a 20% ad valorem tax, as apposed to the current 100% tax. National Business Council (CONEP) president Lisandro Macarrulla says that the proposed tax reductions would allow for more competitiveness in the productive sectors. Speaking on the other proposed bills, Macarulla says that the business sector usually opposes amnesties for people who haven't paid taxes because it serves as an incentive for tax evasion. The Association of Beer Producers (ADOFACE) welcomed the President's initiative. Hoy quotes ADOFACE executive director Ana Ysabel Acosta as saying that once the bill is passed there would be a decrease in the price of beer, which will be passed on to the consumer. This is expected to result in an increase in beer sales.

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