The Tax Department (DGII) began applying the carbon tax that sets a price for carbon dioxide emissions as of 28 December 2012. The new tax is established in Art. 16 of Law 253-12 passed in November 2012. It applies to all imported vehicles new and used and is based on the grams of CO2 per kilometer. The tax needs to be paid in addition to the 17% tax established in Art. 22 of Law 557-05 for the issuing of the first license plate registration and is applied on the CIF valued declared at the Customs Department. The DGII has published a listing containing the carbon dioxide emissions per brand/make of vehicle. Vehicles not included on the list will pay the maximum 3%. The government exempts buses for more than 16 passengers and cargo trucks from paying this tax.
The implementation of the carbon tax comes at a time when US and European-made vehicles enter the Dominican Republic taxfree as part of the DR-CAFTA and EPA trade treaties. The carbon tax only applies to the vehicle’s first registration. Vehicles already in circulation are exempt from paying the tax.
The application is as follows:
a) Less than 120g CO2/km = 0%.
b) More than 120 and up to 22g CO2/km = 1%
c) More than 220 and up to 380g CO2/km = 2%
d) Over 380g CO2/km = 3%
The DGII also announced the start of the new formula for calculating the IPI property tax. As of 1 January 2013, all values of property owned by a single owner are being added and there is a RD$5 million deduction. Up until now, the IPI tax had applied to every individual property. These taxes enter into effect along with the increase in ITBIS from 16% to 18% and new application of 8% on selected food products.
www.dgii.gov.do/legislacion/leyesTributarias/Documents/ley253-12.pdf