In its session yesterday, Tuesday 13 November, the Chamber of Deputies declared the legislation to be urgent, and approved the proposal to modify the Law for the Strengthening of the Collection Capacity of the State (tax reform) in two consecutive readings, thus eliminating the application of taxes on merchandise included in low-value shipments of Internet purchases under US$200.
The proposal was approved unanimously by the vote of 144 deputies in first reading and by 143 deputies in the second reading. It was then sent on to the Senate for urgent hearings in this afternoon’s session, Wednesday 14 November.
The deputies accepted the argument that Art. 49 would affect goods that are acquired over the Internet, might produce a situation of serious inequality to the prejudice of the consumers who use this medium for their purchases, import them through courier services, and do not benefit from price discounts for volume granted to large commercial establishments.
Critics had argued that taxing Internet purchases of under US$200 was in violation of the DR-CAFTA free trade agreement.
The first phase of Fiscal Reform Law 253-12 goes into effect on 10 December, according to the Tax Department (DGII), as reported in Listin Diario. Lottery prize winners and anyone benefitting from interest paid abroad, retentions for dividends and the 5% on suppliers to the state will be due this year. The increase in ITBIS from 16% to 18% and increases on tobacco and alcoholic beverage luxury taxes will come into effect on 1 January 2013. The RD$2 extra tax on fuel sales goes into effect with the publication of the law.
www.dgii.gov.do/publicaciones/avisosInformativos/Documents/13-12.pdf
www.dgii.gov.do/noticias/Paginas/Impuestos-Internos-establece-que-la-mayor%C3%ADa-de-las-medidas-de-la-Reforma-Tributaria-entran-en-vigencia-a-partir-del-primero.aspx