The Dominican Republic : In face of fiscal
pressures, the country progressively eliminated subsidies on gasoline, diesel and LPG during
2005–08. As a mitigating measure, part of the increased revenue was used as cash transfers
to poor households and to drivers of public transportation. Transfer payments are made
through a solidarity bank credit card (Bonogas cards). Subsidies cover the difference between
the market price and the below-market price for consumption below a threshold established
by MIC. Fuel prices are among the highest in LAC, and have led to smuggling from Haiti.
Fuel subsidies have been reduced to modest levels (0.1 percent of GDP in 2013). However,
until the automatic pricing mechanism ensures the pass-through of changes in international
prices without foregone revenue, the reform remains incomplete. The resort to VAT tax
reductions to smooth prices in recent years has affected negatively budgetary revenue. Fuel
taxes amounted to 2 percent of GDP in 2012.
https://www.imf.org/external/pubs/ft/wp/2015/wp1530.pdf