The business sector has reached agreement on a tax on their fixed assets, as proposed by the government as part of the tax reform project, but with the requirement that the taxes be deductible from their income taxes. The series of alternatives presented by the government as substitutes for the estimated RD$30 billion that will be lost to the Treasury because of the terms of the DR-CAFTA treaty include the substitution of the industrial property tax for a 1% tax on fixed assets, excluding the banking industry, and the broadening of the selective consumer tax base. The sources for this information are participants in the Technical Commission team that are currently debating just how to find those RD$30 billion pesos.
The tax on fixed assets would be a part of the Income Tax Report each year as a way to make everything transparent. The National Council of Business (CONEP) is in favor of determining that the baseline for the tax should use different types of assets, but that it should not be considered to be a minimum tax on income. Still to be established is what happens if a business does not earn enough money to hand in an Income Tax Report.
Regarding selective consumer taxes, the government proposes a 10% tax, ad valorum, on cigarettes and alcoholic beverages and a 10% tax on soft drinks. In addition the state wants to put a selective consumer tax on fuels that are currently taxed by the exchange commission tax. Also under consideration is a vehicle tax, based on the value of the vehicle, and the application of VAT on 200 articles that are currently exempt from the tax.