President Leonel Fernandez signed Law 288-04, otherwise known as the tax reform, that is intended to provide the government with a windfall of RD$22 billion in additional revenues. The law will take effect on Thursday, 30 September in Santo Domingo and on Saturday in the provinces, according to the Listin Diario. The provision increases the ITBIS (value-added tax) from 12% to 16%. Likewise, it increases taxation on advertising from 6% to 10% immediately, and from 10% to 16% in 2005.
There could be price rises for beer, rum, cigarettes and cigars, in view of the increased luxury tax on these items.
On a positive note, annual wages of up to RD$240,000 will be tax exempt. That is, monthly wages of up to RD$20,000 will not be assessed.