where does the money come from?

audboogie

New member
Jul 4, 2004
313
0
0
Was wondering where the money comes from in the DR to pay for things such as the garbage truck that comes along every week, or the road that they fix once in a while, or prisons, old people homes, (they have those right??) etc all the things that tax dollars in the US pays for....is it the same deal in DR as far as everything is paid with tax dollars? are taxes taken out of dominican workers paychecks? do dominicans pay taxes every year? do they pay taxes on homes, land?
 

Criss Colon

Platinum
Jan 2, 2002
21,843
191
0
38
yahoomail.com
Your Questions Are Too Complicared to answer in Great Detail.

But I have lived here for 10 years and can tell you a little about how the "Syatem" works here in the DR.
"Yes" the government collects taxes,a lot and at really high rates !22 % on a Phone Card is an example! 16% sales tax on just about everything,and all inported products.Taxes on your own personal check that you exchange for cash at your bank.Lots of "services" are highly taxed.
Your income is taxed,but only above about 30,000 pesos a month,I think.
Real property is taxed each year,but most residencial owners won't pay that.(Is that right Hillbilly?)Exchanges of property is when the government steps in to collect!

Those garbage trucks and police cars,don't actually do anything,if you want real service you need to "Tip" both of them to take care of your needs.

The government officials steal about 60 o 75% of all the taxes collected,(Years ago I thought the number was only about 40 to 50 %,now I "see" more!)
Just this morning I was talking with a vendor of hospital cleaning products bout "Government corruption,theft,and fraud.He is NOT a Dominican,but from a South American Country.He said that if he wants to sell to "Public Health" here in Santo Domingo,he gives them a bid of say,1000 pesos for a gallon of anti-bacterial soap.They say,"OK",but bill us 1,400 per gallon,and give me the difference in cash!That is above the 10 to 15% "commission" which is "Standard"!

I think that should give you an idea about how "things" work here in the DR!

cccccccccccccccccccccccccccccccccccccccccccc
 

Stodgord

Bronze
Nov 19, 2004
668
14
0
Criss Colon said:
Just this morning I was talking with a vendor of hospital cleaning products bout "Government corruption,theft,and fraud.He is NOT a Dominican,but from a South American Country.He said that if he wants to sell to "Public Health" here in Santo Domingo,he gives them a bid of say,1000 pesos for a gallon of anti-bacterial soap.They say,"OK",but bill us 1,400 per gallon,and give me the difference in cash!That is above the 10 to 15% "commission" which is "Standard"!

I think that should give you an idea about how "things" work here in the DR!

cccccccccccccccccccccccccccccccccccccccccccc


Wow! The DR needs a Waste, Fraud and Abuse committee/hotline.
 

Conchman

Silver
Jul 3, 2002
4,586
160
63
57
www.oceanworld.net
A few years ago, I remember seeing a DR1 news report where the individuals of the 'Anti-Corruption Unit' of a certain government department were found to be 'padding' bills or getting kickbacks of some kind for their office furniture or computers or something, can't remember the details but it was funny enough to copy and paste it in order to send it to some friends of mine abroad.
 

Chris

Gold
Oct 21, 2002
7,951
28
0
www.caribbetech.com
audboogie said:
Was wondering where the money comes from in the DR to pay for things such as the garbage truck that comes along every week, or the road that they fix once in a while, or prisons, old people homes....,

The only garbage truck that comes along every week, is the fellow in the little camionetta that we pay to take the garbage... The roads that they fix, well, I've been on many roads where the residents or some enterprising persons are busy filling potholes with someone else waving me down to pay something for their work... Prisons, no experience, but I believe you have to take food if you have someone in prison. I've never seen a elderly care facility here in the DR.

Criss spoke about taxes...
 

carina

Silver
Mar 13, 2005
2,691
4
0
Have to agree with you Chris.
Garbage works fine where I live, the truck comes every day.
Potholes, fix yourself...or as you said..someone fixing them asking you to chip in.
Taxes? Eh?

An old man on my street, no work, no pension, never married, no kids...
Really good man, he cleans and he fixes what he can.
About 10 days a month he has no food.
Why? Because his "income" is renting out his garage, and a room in the house.
Taxes? Eh?????
 

audboogie

New member
Jul 4, 2004
313
0
0
Your income is taxed,but only above about 30,000 pesos a month,I think.

this is what i was wondering, bc for example the teachers who make 150-300 pesos per day, how would they be taxed?? a peso? but if you say you have to make a minimum thats different.
 

carina

Silver
Mar 13, 2005
2,691
4
0
Those who earn less ( i.e most of the population ) still pay taxes on everything they buy, incl. electricity, phones, phone cards, food etc.
See Chris Colons posting above.
 

La Profe_1

Moderator: Daily Headline News, Travel & Tourism
Oct 15, 2003
2,302
874
113
Chris,

You said: "I've never seen a elderly care facility here in the DR." There is one in Puerto Plata, run by a group of religious sisters. The government "pays" them - but they get 1000 pesos a MONTH per patient from the DR. That is supposed to provide food, shelter, clothing, medical care, etc.

Hah!
 

carina

Silver
Mar 13, 2005
2,691
4
0
I agree La Profe_1, my neighbour lives on 800 pesos a month.
He owns his house, he pays for the phone, he is hooked up on the electricity and out of food, as I wrote, about 10 days a month.
Rest of 20 days a month... rice, platanos, some salsa de tomatoes..
And with hope he gets something from the neighbours..
 

Hillbilly

Moderator
Jan 1, 2002
18,948
514
113
So far, pretty accurate reporting.

The DR government taxes imports quite heavily. There is the normal duty, plus a 13% tax on the dollars you used to purchase the stuff, plus a "temporary" 2% tax on all imports, plus a VAT tax of 16% on whatever it was you imported....

There is a nearly 50$ pesos a gallon tax on fuels
Telecomunications are takex about 22%
All airline tickets are taxed
Beer, cigarettes, liquors are heavily taxed

Property taxes are on "sumptious" houses and vacant lots in the cities. Define "sumptious" ....Like a house in La Barranca in La Romana's Casa de CAmpo pays about RD$500,000 a year in taxes... ($15,000 US$)

Income taxes-only for salaried workers whose income is on the books of major corporations- are for those above RD$25,000 a month or so...

But lawyers, doctors, and other professionals that provide services, seldom pay taxes.....Some do pay a minimum and cry all the way to the tax office..and then giggle all the way to the bank :p:p

HB
 

yasmin

Member
Jun 16, 2005
81
1
18
Lots of taxes so far. Does all the money goes to the government's pockets, or where do they use it for? To me, it doesn't seem they use it for hospitals, roads, schools, garbage,...

Other question, all the 10US that tourists pay to enter and leave the DR, is this only to pay the airport + services?
 

Chris

Gold
Oct 21, 2002
7,951
28
0
www.caribbetech.com
Thanks La Profe_1.. it is good to know that there is one. I've often wondered. But 1,000 pesos a month? My mind cannot even think how to make that stretch far enough.

La Profe_1 said:
Chris,

You said: "I've never seen a elderly care facility here in the DR." There is one in Puerto Plata, run by a group of religious sisters. The government "pays" them - but they get 1000 pesos a MONTH per patient from the DR. That is supposed to provide food, shelter, clothing, medical care, etc.

Hah!
 

Chirimoya

Well-known member
Dec 9, 2002
17,850
982
113
I've heard of some, but they are run on shoestrings by charities and churches. I am sure the state has no such facilities. I don't know if there are any private homes, as the usual thing would be to employ carers in the family home, staff costs here being so low.
 

NALs

Economist by Profession
Jan 20, 2003
13,509
3,201
113
yasmin said:
Lots of taxes so far. Does all the money goes to the government's pockets, or where do they use it for? To me, it doesn't seem they use it for hospitals, roads, schools, garbage,...

Other question, all the 10US that tourists pay to enter and leave the DR, is this only to pay the airport + services?
Over half of all the taxed money goes to pay the national debt.

The roughly half that's left is split between:

Infrastructure, education, electricity, gasoline, maintanence of certain structures, construction of new needed infrastructural projects, Plan Sierra (reforestation project), deportations (yes, they cost money), disaster relief in times of destruction, "membership" fees to all the multilateral organizatons we have joined (ie. Caricom, WTO, etc), health, subsidies, tourism promotion, protection, NGO organizations that are here to supposedly "helping" the country and yet, ask for money from the government...hmm (btw, not all NGO's go this, but a sizable number of them do), corruption, etc.

But, we can all agree that if the other half that is flowing to already wealthy nations would not had to be done, there would be plenty more money for everything else in this country, for sure.

The entry and exit taxes and tourist cards goes to the government. All the airports belong to enterprises that are legitimate and obvious (ie. Aerodom owns Las Americas, Gregorio Luperon, etc, Grupo Punta Cana owns Punta Cana International, Casa de Campo owns La Romana, and Cibao International in Santiago is a company in itself brought to existence by the prominent business families of Santiago for the service of the general public and the business interest of the Cibao region!)
 

NALs

Economist by Profession
Jan 20, 2003
13,509
3,201
113
Chirimoya said:
I've heard of some, but they are run on shoestrings by charities and churches. I am sure the state has no such facilities. I don't know if there are any private homes, as the usual thing would be to employ carers in the family home, staff costs here being so low.
This is not directed to Chiri in particular, but to the entire thread readers:

In case any of you have not noticed, PEOPLE GROW OLD WITH THEIR FAMILIES!