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View Full Version : Lower taxes for tourism industry



NewsWhore
08-30-2007, 06:00 PM
The National Hotel & Restaurant Association (ASONAHORES) is proposing that the DR should introduce a special reduced taxation regime for tourists, similar to that in effect in competitor countries. This would call for lowering ITBIS (VAT), air fees and administrative charges that affect the DR tourist sector's competitiveness. Asonahores president Luis Lopez made the comments in the keynote speech on occasion of the opening of the Asonahores Annual Trade Show at the Dominican Fiesta Hotel. He says that the sector is affected by the current heavy tax burden and the overvaluation of the peso. He called for measures to prevent a decline in travel on the grounds that tourism is an export activity, and the universal principle that taxes should not be exported.
According to Lopez, last year the government received at least RD$25 billion in taxes from the four million tourists who visited the DR in 2006. He added that it's a myth that tourists aren't taxed. Lopez said that tourists are taxed before they even get on the plane, right until they return home and added that taxes are an important topic relating to the sustainability of the tourism sector. In 2004 the government received US$119 per tourist and this increased to US$159 in 2005, for a 30% increase. In 2006 the government received US$191 per tourist for a 20% increase compared to 2005, and a 71% increase from 2004. For the current year the government is receiving US$200 per tourist.

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