The new changes in the tax code go into effect tomorrow. Law 288-04 calls for a 4% increase in the VAT and higher alcohol and cigarette taxes. Publicity will be taxed at a 6% rate until December of this year and in 2005 the accounts will be taxed at a 10% rate. Your phone bills will be going up with an increase to 10% on all calls. For every RD$1,000 written on any check, there will be a RD$1.50 tax. There are additional taxes on luxury housing and vacant lots in urban areas, as well as inheritances.
El Caribe and the Listin Diario published today the complete Tax Reform Law 288-04 of 28 September 2004. The law considerably increases taxes in the Dominican Republic in order to secure fresh resources for the Fernandez government.