The Department of Taxes (DGII) is expecting to collect RD$3.2 billion with the increase in taxation for vehicle sticker renewals. The stickers are known as “marbete” and are required for vehicular circulation. The tax was increased in the fiscal reform approved in November of last year. The sticker renewal process starts in August and ends in November. DGII director Guarocuya Felix explained to the Diario Libre that the annual tax for vehicular circulation is 1% of the value of the vehicle, with exceptions. The government expects to receive RD$1.8 billion more than last year for the sticker renewals. He said the extra revenues are needed to correct macro-economic distortions and to maintain the present economic stability.
Felix says there is a lot of confusion regarding the application of the tax, indicating that it depends on the year of the vehicle and that not everyone is going to pay the 1% for the right to circulate on the roads. “Those that will pay the most will be the most costly vehicles,” he explained. He said that the middle class will feel less the impact of the sticker tax.
This is the second time the DGII introduces the vehicular taxation based on cost of the vehicle. A previous effort was discontinued due to widespread protests. This time around, cargo transporters protest that while the extra tax on people transport vehicles was eliminated, this time around, it was maintained for cargo, which will add to the cost of goods sold on local markets.