Technical Minister of the Presidency Temistocles Montas has developed a draft tax reform that would compensate the estimated RD$30 billion impact on collections during the first year of the DR-CAFTA. The proposal includes: an increase in the application of the VAT (ITBIS) at a different rate and exempting some food items, medicines and health and education services; the application of the income tax to free zone industry profits; the application of the income tax to interest generated by bank deposits; an increase in the selective consumer tax on alcoholic beverages and tobacco; the unification of the selective consumer tax to the import of vehicles; and the modification of the tax system established in the fuel law. The official did not specify the amounts of the taxes.<\/p>\n
Also included is the increase of tariffs to countries not included in the DR-CAFTA. The proposal will be discussed starting today by a technical commission composed of government officials, businessmen, and lawmakers created yesterday at a meeting of the National Dialog, coordinated by Msgr. Agripino Nunez Collado. The final proposal must be ready on 25 July. After that day, a higher-level commission will refine the proposal and motivate its presentation by the Executive Branch to Congress on 16 August.<\/p>\n
Meanwhile, Msgr. Nunez Collado sustained that a political pact regarding the DR-CAFTA and compensatory measures is being developed and has been practically approved by the PLD and the PRSC. The pact was to be discussed yesterday afternoon by the PRD.<\/p>\n","protected":false},"excerpt":{"rendered":"
Technical Minister of the Presidency Temistocles Montas has developed a draft tax reform that would compensate the estimated RD$30 billion impact on collections during the first year of the DR-CAFTA. The proposal includes: an increase in the application of the VAT (ITBIS) at a different rate and exempting some food items, medicines and health and … <\/p>\n