Ernesto Selman of the Regional Center for Sustainable Economic Strategies (CREES) is arguing that the country should reduce the ITBIS and income tax to 14%, down from 18% and 29% at present. He said the country faces a series of distortions caused by the high taxes and multiple tax exemptions. He said that if these exemptions were eliminated then taxation could be reduced. He made these comments last week, during the Eighth International Congress of Finances and Auditing (CIFA) sponsored by the Association of Banks of the Dominican Republic.
He also proposed reducing public spending, including eliminating government departments that carry out duplicate roles and laws that establish fixed percentages to benefit certain sectors. Most of these laws are not fulfilled anyway. Selman also called for a reduction in government payroll of RD$8.4 billion.
www.hoy.com.do/economia/2012/7/18/437613/CREES-propone-ITBIS-ISR-de-14-para-todos