As a result of the tax reform legislation that took effect last week, Centennial, Orange, Tricom and Verizon telecommunication companies have announced a 100% increase in taxes on their clients’ billings as follows:
The 12% ITBIS tax is increased to 16%.
A new 10% luxury tax, as per the tax reform, is to be assessed on telecom charges.
These taxes are in addition to the 2% CDT surcharge that is collected for the Dominican Institute of Telecommunications (Indotel).
The companies explain that the level of government surcharges on telecommunications now stands at 28%, up from a previous 14%. Prepaid calls will have the taxes incorporated in the price.