The Direccion General de Impuestos Internos, the department of taxes, and the Federacion Dominicana de Comerciantes (FDC), a major association of retailers, agreed on a 0.4% reduction in the advance gross sales tax to be paid by these. The government agreed that retailers selling more than RD$6 million a year will pay 1.1% monthly advance tax on gross sales, down from 1.5% that all other businesses are being charged. The director of the tax department, Teofilo Tabar said that this will be a pilot project. A breathing space of two or three months will be given to the retailers during which time the tax department will ascertain whether or not they can pay the 1.5% tax.
