Vice President Rafael Alburquerque, in the name of traveling President Leonel Fernandez, signed into law the tax reform legislation that generated so much debate over the last two months. The tax package is intended to replace the funds lost as a result of the implementation of the DR-CAFTA agreement that includes the elimination of the 13% exchange commission tax on dollars used to import anything into the Dominican Republic, as well as an overall reduction in import duties and tariffs. The new law modifies laws 11-92, 18-88 and 112-00. These are laws that deal with the Tax Code, the tax on luxury housing and the taxes on fossil fuels. The new program also modifies laws 146-00 as well as 40-27 which are laws dealing with customs and tariffs.
The fiscal reform calls for the expanding of the ITBIS (VAT) base to more than 100 new products, a 17% tax on vehicle registration, an increase from 25 to 30% on personal income tax of the higher category of earners, and the continuing of the 1.5% tax on gross sales of companies. It also establishes a 25% tax on premium gasoline sales and different types of diesel fuel.