El Siglo reports that despite the considerable increase in taxes in January, government income has not met estimates set in the 2001 National Budget. Income has only increased 10% in the first six months of the year, significantly below the 16.4% increase during the first six months of 2000, when taxes were lower. The Customs and Internal Revenues department reports income is up RD$22,972.7 million, which is RD$2,112.9 million more than last year. Overall, government income was up 22.3% but this is primarily attributed to the increase in fuel taxes due to the Hydrocarbon Law which is expected to generate RD$7,300 million this year, according to the president of Shell in the DR. El Siglo says that at this pace, the fiscal deficit at year end should be at least RD$3,000 million. The government increased VAT taxes on imported goods (ITBIS) from 8 to 12%, the Selective Tax on Consumption (also called the luxury tax), and implemented a new 1.5% tax on gross income in order to increase its revenues.
