Tax proposals scare everyone

[Dolores]

The Abinader administration has presented its Bill for Fiscal Modernization. Many of those who understand what the term “fiscal” means also understand that this is just a euphemism for tax increases. In this case, across the board.

The groundswell of negative reactions began even before the proposal was released, as the information that was leaked alarmed many business sectors. Nearly a week previous to the introduction of the new proposals in Congress, the rum manufacturers were complaining about reduced sales, movie-makers were alarmed, and the tourism sector began to brace itself for the shocks.

Small business associations advocate that the modernization of the fiscal code should instead incorporate measures to simplify taxes to encourage more businesses to legalize their status. Most businesses in the Dominican Republic are in the informal sector and many attribute...

Continue reading...

 

[CristoRey]

This path is the exact same path that has lead so many countries to Communism.
Quitting while you are ahead is not the same as quitting.
Stop now.

How about cutting the size of this bloated government in half first.

 

[Fulano2]

I don’t think it’s going to happen.

 

[Manuel01]

Continue reading...

The only think i do like about it is the "Tax Amnesty" that will certainly declared ahead of it".

 

[chico bill]

I don’t think it’s going to happen.

Javier Milei did it in Argentina and took inflation from 25% to 4.4% in less than a year buy cutting bloated government​

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[La Profe_1]

Remember to keep posts DR related, please.

 

[2020]

In the DR - like in many democratic countries - have a vast array of special interest groups. Liquor, food, courier, tobacco, sugar, tourism, and many more. I think this broad and sweeping tax proposal affects all of the them except mortuary businesses.

Unless their is a new 18% tax on caskets?

 

[CristoRey]

Interesting read for anyone who's interested in the IMF's opinion after their recent visit to the DR.

IMF Executive Board Concludes 2024 Article IV Consultation with Dominican Republic

Washington, DC – September 10, 2024: On September 10, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with the Dominican Republic and considered and endorsed the staff appraisal without a meeting.

www.imf.org

 

[CristoRey]

 

[Tug7777]

Hard to tax small vendors and Buinesses when its a cash or pesos only ,under the radar operations !

 

[JD Jones]

Hard to tax small vendors and Buinesses when its a cash or pesos only ,under the radar operations !

Have you seen the cashless systems that have be implemented in various countries? Everything paid by cel phone electronically... and taxed.

 

[NanSanPedro]

Have you seen the cashless systems that have be implemented in various countries? Everything paid by cel phone electronically... and taxed.

I still don't see how that will work with the fruit/veggie/egg/etc peddlers that make the rounds on the street.

 

[Notengo]

They first need to work on the bureaucracy that is limiting businesses to even be able to become legal. It takes months to get registrations and you can’t get the next one unless you have a prior one. No wonder many don’t do it, apart from the added tax obligations. There is no benefit for the majority to go legal.

 

[JD Jones]

I still don't see how that will work with the fruit/veggie/egg/etc peddlers that make the rounds on the street.

How would you pay them if you don't have physical money, besides bartering.

 

[JLSawmam]

I still don't see how that will work with the fruit/veggie/egg/etc peddlers that make the rounds on the street.

From this thread https://dr1.com/news/2024/10/08/gov...es-on-coca-cola-and-a-new-name-for-the-itbis/ A single 18% rate for the ITBIS tax, the local Value Added Tax (VAT), exempting essential items like bread, rice, chicken, eggs, milk, plantains, and yucca. My hunch is that most locally produced fruits and veggies will remain exempt as they are now. So, the street vendors will not incur a tax and thus not need to impose one on their customers.

 

[NanSanPedro]

How would you pay them if you don't have physical money, besides bartering.

So they withdraw all physical currency?

 

[CristoRey]

This DR has 23 ministries.
They should be talking about trimming the fat along with the bloated salaries and wasteful spending, not raising the taxes on the working class.

 

[chicagoan14]

I am all for removing the 10% "propina legal"

They should also make it illegal for the suggested tip on the bottom of the receipt to be X% of the price after 28%

 

[CristoRey]

.....the local Value Added Tax (VAT), exempting essential items like bread, rice, chicken, eggs, milk, plantains, and yucca. My hunch is that most locally produced fruits and veggies will remain exempt as they are now. So, the street vendors will not incur a tax and thus not need to impose one on their customers.

You are thinking like a Westerner, not a Dominican.
In practice the tax will be added to all of the above.
yet another reason the whole plan needs to be reformulated.

 

[josh2203]

Have you seen the cashless systems that have be implemented in various countries? Everything paid by cel phone electronically... and taxed.

So all the street vendors will be accepting payment via mobile phone?