2004News

Tax reform follow up

Proponents of various industries in the Dominican Republic are unhappy that the real estate on which their businesses are located should be taxed at a rate of 1% according to the new proposals. The executive committee of the Industrial Association of the Dominican Republic (AIRD) expressed their agreement on the need for a tax reform, but insisted that the reform be phased in gradually. One phase would introduce taxes needed to generate the desired level of government revenue, while a second stage would dismantle these taxes. AIRD would, in the short term, endorse the tax reform because the country is working against the clock. They added, however, that a date should be set to limit the application of the new taxes. While newspapers announced that the IMF team would meet with Congress yesterday, no such meeting occurred due to delays in the United States in connection with computer problems being experienced by American Airlines. These problems grounded AA and USAir flights on Sunday.