The Customs Department announced new regulations that reduce the taxes paid on new utility cars, making these more attractive to local consumers. The idea is for Dominicans to prefer new vehicles, rather second hand vehicles. Large numbers of used vehicles that have been imported in recent years have increased environmental contamination. Customs announced that it is cutting the tax on new cars valued up to US$16,000 by 20%. To compensate for lost revenues, it is raising taxes on luxury vehicles by 8 and 6 percent. Norm 2-99 also increases the depreciation of new vehicles, as part of measures to make buying new vehicles more attractive. Giving examples, of what the tax changes will mean to consumers, Customs Director Cocco said that a 1998 Honda Civic that paid RD$66,566 will now pay RD$51,509 in taxes. A Toyota Camry that paid RD$131,933 in taxes will now pay RD$96,741. While a Toyota Lexus that paid RD$402,000 will now pay RD$457,000.
