NewsWhore
06-12-2007, 07:10 PM
As reported in Hoy, Tax Department (DGII) head Juan Hernandez says that there is no possibility of reducing taxes in the DR. Although this wish has been expressed by many sectors in the country, Hernandez claims that if taxes were reduced to 15%, the country would be in trouble. Hernandez cites a report by the Inter-American Development Bank (IDB) that says that if the DR reduced taxes by 15% the country wouldn't be able to sustain itself for a month. He also says that the lowest tax level would be 24%, if free trade zones were included.
Hernandez's stand is not good news for the reduced number of Dominicans who do pay taxes. A front-page story in today's Listin Diario says that if hidden taxes are taken into account, the DR has the greatest tax burden in the region. "Compared with the rest of Latin America, the DR is taxed at the highest rate, especially when taking into account the narrow base of people who pay these unavoidable taxes," reports the newspaper. Economist Hector Salcedo Llibre explains that taxes in the DR are levied on the same people who always pay. Data from the Inter-American Tributary Center (CIAT) indicate that the burden is 18.3% in the DR compared to Costa Rica (14.5%), El Salvador (13.5%), Guatemala (10%), Nicaragua 16.8%), Panama (9%), Peru (14%) and Venezuela (12.5%), according to ECLAC data. Only Argentina, Bolivia, Chile and Uruguay have higher tax burdens than the DR.
More... (http://www.dr1.com/index.html#5)
Hernandez's stand is not good news for the reduced number of Dominicans who do pay taxes. A front-page story in today's Listin Diario says that if hidden taxes are taken into account, the DR has the greatest tax burden in the region. "Compared with the rest of Latin America, the DR is taxed at the highest rate, especially when taking into account the narrow base of people who pay these unavoidable taxes," reports the newspaper. Economist Hector Salcedo Llibre explains that taxes in the DR are levied on the same people who always pay. Data from the Inter-American Tributary Center (CIAT) indicate that the burden is 18.3% in the DR compared to Costa Rica (14.5%), El Salvador (13.5%), Guatemala (10%), Nicaragua 16.8%), Panama (9%), Peru (14%) and Venezuela (12.5%), according to ECLAC data. Only Argentina, Bolivia, Chile and Uruguay have higher tax burdens than the DR.
More... (http://www.dr1.com/index.html#5)