2004News

Double taxation of wages?

The Young Entrepreneurs? Association (ANJE) called attention to the obvious double taxation of salaries contained in the tax reform proposal being debated in Congress, which would authorize a RD$15-per-RD$1,000 tax on wages that are withdrawn electronically. ANJE spokesperson Manuel Diez pointed out how confusing the new proposals are becoming, referring to the proposed 0.15% tax on check transactions, which business owners would pay to cover their employees salaries, and then the 0.015% tax that would hit employees upon withdrawing their funds at the ATMs.

Domingo Espinal Collado, the president of the Association of Import Warehouses, revealed that his group sees the tax on electronic transactions as a scheme ?tailor-made? for the banking industry. Espinal and two of his officers pointed out that the proposed measure would take a lot of work off the banks? shoulders and simultaneously transfer the tax burden to everyone using the electronic teller machines.