The government is holding a further meeting with social and trade union representatives on Wednesday to continue identifying compensatory measures for the neediest sectors of society within the framework of the tax reform. These sectors oppose the inclusion of oil, sugar and coffee in the list of products that will be subject to VAT (ITBIS). They also want the government to increase investment in social programs from 7.2% to 10% of GDP.
The private business sector hasn’t agreed on a reform either. After the agreement announced by the government and the business sector, which was represented by the National Private Business Council (CONEP), groups such as the National Association of Hotels and Restaurants (Asonahores), the Dominican Agribusiness Board (JAD), among others, have presented their independent proposals, which are hindering the development of a consensus for submitting the bill to Congress.
Yesterday, Asonahores president Enrique de Marchena said that CONEP’s position did not represent the tourism sector. The hotel sector is requesting a special 8% VAT (ITBIS) for the sector to be able to compete with the Maya Riviera and Cancun, where the rate is 10%. They also request that tourists should not be subject to the selective consumer tax and that the sector be included in the export benefits as they are “exporters of services”.
The JAD wants raw materials to be exempt from taxes as well as machinery for the agricultural sector and basic foodstuffs.