2004News

Taxes take 40% of gasoline price

For every gallon of gasoline that is bought by the general public at RD$79.30, the government takes RD$31.36 (or 39.56%). Premium gasoline has a 42.75% tax and diesel just a 16.83% tax, although the price of a gallon of diesel is not the same as a gallon of regular gasoline, according to El Caribe. Nonetheless, in most part thanks to the stable dollar and slightly lower oil price, the cost of fuels to the public has gone down recently, in spite of increased government taxes. The letter of intent sent to the IMF says that there will be a 10% tax on fuels in order to help assist the government with its debts and lack of cash flow. Article 2 of the Hydrocarbon Law (112-00) says that the price index should be adjusted every three months in accordance with the Central Bank’s Consumer Price Index, but these reviews were ignored for four months between December 2003 and March 2004.