The Chamber of Deputies moved forward on the tax reform, with the approval of a first reading. The Chamber is scheduled to meet again on Sunday for the second reading. If approval is granted, the bill will then be sent to the Senate, where ratification will easier to obtain because of the absolute majority of the PRD senators.
The first reading was endorsed with the vote of the PLD deputies, while the PRD deputies left the hall, with the exception of Marino Collante, who presides over the commission that is studying the legislation.
The first reading incorporated several changes to the piece as received from President Hipolito Mejia. The deputies chose not to extend the base of the ITBIS to further items and not to eliminate incentives provided by Law 158-01 for touristic development and those provided by Law 28-01 for border development. Furthermore, it will not increase taxes on alcoholic beverages. The limit for tax-exempt wages was increased to RD$30,000 from RD$13,000. Taxes on rentals were reduced from the proposed 20% to 10%. The taxable assessment for luxury dwellings was increased from RD$3 million to RD$5 million. The article that modified banking confidentiality was eliminated, as were the penalties for tax fraud.