The government wants to reduce import taxes from 35% to 20%. But it wants to increase the Value Added Transfer Tax from 8 to 12% to compensate for the drop in income. In a second phase, the government has proposed a second increase to 14%. The government also wants to increase the Selective Consumption Tax, a tax on items described as luxury goods (alcoholic beverages, cigarettes, jewelry) from 20% to 40%. The government says it will lose RD$5,400 million a year in import revenues if tariffs are reduced. PRSC and PRD senators have accepted to increase the ITBIS to 10%. Talks continue between government technicians and senators. Congress reopens next week.
