Airline tickets will soon cost less in the Dominican Republic, as Congress has passed the bill that reduces to 10% the government tax on these. The bill modifies Art. 382 of the Tax Code. President Fernández had vetoed the bill earlier this year arguing it would represent RD$200 million less in income for the government. Later the President’s Office said it favored the passing of the bill. Travel sectors say that the government will not loose income, rather gain. They explain that more Dominicans and Dominicans residing abroad will purchase their airline tickets in the Dominican Republic, as a result of the reduction in the airline tax. At present Dominicans in New York purchase their entire airline tickets in New York. In the past they would come with a one-way ticket and purchase the return ticket in pesos. Also, it is very common for travelers on long haul trips to purchase only a short segment of their trip in this country, preferring to buy the remaining portions abroad to avoid the 20% tax. The bill has yet to be promulgated by the Presidency for it to become law. This is expected to happen this month.
