Ministry of Public Works employees were seen working on improvements to the toll booths over the weekend of 8-9 March nationwide, as the increase in tolls is imminent. Last week the Ministry announced plans to increase tolls on the Las Americas, 6 Noviembre, Carretera Sanchez and Duarte highways from RD$30 one-way at present to RD$50 both way, or RD$100 for the return. Trucks and buses will pay much more.
The Ministry said it would be increasing the tolls instead of applying the 1% on value of vehicles that was approved in the Fiscal Reform of November 2012.
A report in Diario Libre today, Monday 10 March, says that for most citizens the imposition of the 1% tax would have been better. The report analyzes how the 1% tax on luxury vehicles would have affected many fewer Dominicans than the government decision to increase tolls several times. The 1% tax was included in the November 2012 tax reform, but in 2013 the government postponed its implementation and again decided to do so. It is a common government practice to pay officials for the use of their vehicles. This is part of the wasteful spending the government is much criticized for. This has enabled hundreds of thousands of luxury vehicles to be purchased by government officials, vehicles that private employees cannot afford.
Diario Libre comments that an owner of a 1600cc Toyota Corolla 2008 valued at RD$371,498 according to the Tax Department (DGII) would just pay RD$1,200 for the permit to circulate. In order to cross one of the tollbooths, however, they will now have to pay RD$100 (both ways). That means that a commuter working five days a week would have to pay RD$2,000 a month.
In contrast, the owner of a 2960cc Mercedes Benz 2013 valued by the DGII at RD$4,082,668 is released from paying RD$40,826 for the tax on luxury vehicles.
The DGII had said that 60% of the vehicles would pay no more than RD$2,200 for the 1% on vehicle assessed value.
The Diario Libre report comments that the biggest beneficiaries are a minority of luxury vehicle owners while the toll affects everyone.
Last week Administrative Minister of the Presidency Jose Ramon Peralta announced there would be no increase in taxes or more taxes.
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