Tax reform scares everyone as IMF visits Dominican Republic

Dolores

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The visit by a group of experts from the International Monetary Fund (IMF) in July 2024 has a lot of people worrying about just what they will have to say about the proposed tax reform legislation that the Abinader administration has declared as a priority for this year.

The IMF mission will look at such things as tax incentives given to businesses established in the industrial free zones, the special treatment given to couriers that bring in packages from overseas, as well as public spending by the government.

Tax evasion is also a topic at the top of the IMF agenda. Certainly the value added tax, called the ITBIS, will be inspected and recommendations made. The Itbis is the largest contributor to the government coffers, however, with upwards of 30% of the tax revenues. Nevertheless, recent closures of dozens of businesses for evading payment of this tax...

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PJT

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Tax reform scares everyone, true. What may be more alarming is there is no restraint on how tax revenue is distributed. Checks and balances of government spending are left out, spending caps ignored, botellas still exist, the barrel continues, and officials refuse to divulge incomes. So, the easy fix for the previous, more advantageous for congress is to create tax reform=more taxes. They don't desire to do anything that would embargo their own open pockets from being filled by gifts from the treasury. Politicians... they smile, charm you while at the same time pick your pockets.

The IMF will go along with anything that makes revenue, revenue that repays its loans. No doubt, tax reform will come knocking.

Regards,

PJT
 

Aguaita29

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There´s a lady who has appeared on multiple shows talking about the tax reform. She says this will be the death of small businesses!
 

johne

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There´s a lady who has appeared on multiple shows talking about the tax reform. She says this will be the death of small businesses!
And I suspect grow the informal sector. The informal business has been around since the caveman went to buy a bag of rocks, and I don't think its' growth as stopped since.

I think these visits from the IMF are mini vacations for the small team that comes here. They are wined and dined and then take a group photo including the prez and they get a big fat cigar and we get a "atta boy, keep uo the good work). See you next year.
The reason I'm so sure of my opinion is: What can they look at, oversee or certify here that they can't do with data that can be provided by computer transmission? Are they really going to the streets and count how many trucks are selling 33 lemons for 100 pesos?
 
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johne

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Last week I bought a Samsung refrig that I had kept my eye on the prices for the past 3 months. No sooner than I thought I saved $200 I got banged with a 18% tax and gave it all back. So, I think the gov. got paid a tax when the product entered the country and then got another tax from poor ole me. Kinda like double taxing ...eh?
 

cavok

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The article said one of the things they will be be looking at is "the special treatment given to couriers that bring in packages from overseas". That means possibly eliminating the tax break on shipments under $200. I sure hope that doesn't happen. That will really hurt a lot of the couriers, too.
 
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JD Jones

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The article said one of the things they will be be looking at is "the special treatment given to couriers that bring in packages from overseas". That means possibly eliminating the tax break on shipments under $200. I sure hope that doesn't happen. That will really hurt a lot of the couriers, too.
If they try to tax that, it will wither away to nothing.
 
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