Finance Minister Vicente Bengoa has said that the Fernandez government has no plans to levy new taxes this year. He explained that the government would work closely with the IMF in formulating new taxes aimed at compensating for reduced revenues expected as a result of the forthcoming implementation of the DR-CAFTA free trade agreement with the US and Central America in 2006. Bengoa added that the government would contemplate an earlier date for considering new taxes only if the DR-CAFTA agreement goes into effect in 2005.
Today’s Diario Libre details the Dominican middle classes’ tax burden. Taxes paid every day include: charges of 28% on telecommunications transactions, 35% on regular gasoline, 10% on professional services, a 28% increase in private school costs, 16% ITBIS (VAT), and 26% on restaurant bills.