The Executive Branch submitted the Tax Reform Bill to Congress yesterday, Wednesday 24 October, seeking to raise RD$47.3 billion, some RD$7.8 billion less than the original proposal of RD$55.1 billion.
The new bill has removed the proposed tax on Christmas salaries, but includes a RD$2 increase on each gallon of fuel to fund road infrastructure and public transport.
It proposes a 1% annual tax on the value of vehicles with a minimum of RD$1,200 for those over five years old and RD$2,200 for vehicles that are less than five years old. In addition there will be a CO2 emissions tax, apart from cargo trucks and public transport for more than 16 passengers.
Telecommunications will stay at a 10% tax, while taxes on cigarettes and alcohol will increase.
Items in the basic shopping basket such as rice, beans, meat, chicken, eggs, milk, fruit and vegetables will stay free of sales tax as well as agricultural goods, education services, medicines and basic services.
The rate of sales tax will increase on coffee, sugar, oils, yoghurt, chocolate, entertainment services and personal care products as originally proposed.
www.diariolibre.com/destacada/2012/10/25/i357130_reforma-fiscal-busca-recaudar-rd47-297mm.html