The Central Bank says the country could save US$1.2 billion as a result of the steep decline in oil prices. From US$107 in late June, the price per barrel of West Texas Intermediate (WTI) has dropped to US$55, a decline of around 40%, as reported yesterday, Thursday 18 December 2014. This is the lowest level in the past five years. The Dominican government had based its 2015 National Budget projections on an oil price of US$84 per barrel.
The Central Bank expects that the decline in government taxation revenue on fuel consumption locally will be offset by an increase in sales tax (ITBIS) revenue due to an overall increase in consumption.
The Central Bank expects that the decline in government taxation revenue on fuel consumption locally will be offset by an increase in sales tax (ITBIS) revenue due to an overall increase in consumption.