The Dirección General de Impuestos Internos said that the main focus of the 1.5% advance sales tax are the 500 businesses with income of more than RD$25 million a year that have systematically declared losses. He said that the businesses have found ways to not pay taxes by declaring high expenditures and thus report earnings of an average of an average of only 2% a year. He said that 1.5% tax on gross sales seeks to correct the distortion of the companies that present losses every year and others that present excessive expenses.
