2004News

Tax reform scenarios

Both the Hoy and the Listin Diario carried reports on possible tax reform scenarios. In Hoy?s version, Claudio Cabrera informs that although nothing is definite yet, there have been suggestions that the current tax-free status of the industrial free zones might be tampered with. The proposal that will be put on the table when the government and the business community sit down together will touch on the need for the country to conform to its obligations as a signatory to the World Trade Organization over the next five years. Not withstanding the possibility, a study carried out by two professors from Queen?s University in Ontario, Canada and Dominican collaborators from the Central Bank and the Ministry of Finance says that taxing the free zone companies would put them at a competitive disadvantage. In the Listin article, reporter Bredyg A. Disla writes that changes to the tax on selected consumer goods and the VAT would produce RD$9.84 billion more for the Treasury, 80% of which would come from new taxes on beer.