2004News

Tax reform redux redux redux

Over the past week, every major and minor think-tank, business association or economic sector has managed to put forward their ideas on the tax reforms that the IMF is insisting take place before the change of government on 16 August. The mighty CONEP spoke out at a luncheon of the American Chamber of Commerce, and each and every industry that may or may not be affected by the proposals has also spoken in the press. Today, the PLD proposals are in the news and El Caribe and the Diario Libre both carry items on the suggestions. El Caribe says that the PLD proposals were the work of the IMF team that was in the country last week and that left last Friday. According to the paper, the team managed to reach ?an understanding? with the PLD economic team. The PLD will support a 16% VAT tax, a selective 16% tax on airline tickets, insurance premiums and a 20% tax on self-employed professionals. Also contained in the document called the ?Proposal from the Technical Team of the PLD? are a 10% tax on publicity, a 5% tax on hotel rooms and a new 10% tax on telecommunications. There will also be a 5% surcharge on inheritances and donations. While the tax base for the VAT will be extended to include many products not previously covered, the basic necessities (some foods, medicines, fuels and health and education services) will not be affected. For complete details, take a look at the graphics in the article: http://www.elcaribecdn.com/articulo_multimedios.aspx?…