According to Rafael Hidalgo, the president of the Dominican Federation of Municipalities, if the government would increase the subsidies given to the different city governments to 5% of the National Budget and not charge them the 18% ITBIS tax on their purchases, the nation’s cities could improve services to their constituents. City government subsidies are contemplated in Law 176-07.
Hidalgo urged an increase in central government subsidies from the current 2.8% of the National Budget to 5% in addition to the ITBIS tax exemption. He also suggested that the municipalities collect the tax on vehicle registrations (matrícula), the so-called circulation tax.
Finally Hidalgo explained that the delay in the payment of the February appropriation was due to “computer problems,” according to the budget director, Luis Reyes.
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El Nacional
8 March 2018
