President Leonel Fernandez sent a proposal for fiscal reform to the Senate yesterday. The bill seeks to increase tax revenues as a way of securing more funds for the Ministry of Education budget.<\/p>\n
According to Diario Libre, in a letter attached to the bill sent to Senate president Reinaldo Pared Perez, President Fernandez says the increased taxation responds to demands from the International Monetary Fund (IMF).<\/p>\n
The fifth and sixth review of the Stand-by arrangement signed between the DR and the IMF are under way. Fernandez says the changes are proposed “to comply with the burning cry of those who proposed increased investment in education, a commitment equally shared by this agency (the IMF) in 2009”.<\/p>\n
The objective of the measures is, according to the proposal, to obtain a tax collection surplus equivalent to 0.5% of the GDP (around RD$9.5 billion according to the 2010 GDP), of which a large part will be invested in the construction, remodeling and furnishing of schools.<\/p>\n
According to the bill, a unified tax of 10% is established on gambling operations and gross sales as a simplified way of paying the income tax. Moreover, the cost of registering a sports betting location was raised to RD$300,000. The proposal also taxes gaming and cable television services.<\/p>\n
The President proposes increasing the exemption on the ceiling for taxing luxury housing and reduces the taxation rate on dividends. It also establishes a 10% tax on gambling operations and gross sales, as a simplified way of paying income tax.<\/p>\n
The tax exemption on luxury housing and vacant lots was raised from RD$5 million to RD$6 million. This minimum exemption also will be applied “to the owner of the residence and not to the residence.”<\/p>\n","protected":false},"excerpt":{"rendered":"
President Leonel Fernandez sent a proposal for fiscal reform to the Senate yesterday. The bill seeks to increase tax revenues as a way of securing more funds for the Ministry of Education budget. According to Diario Libre, in a letter attached to the bill sent to Senate president Reinaldo Pared Perez, President Fernandez says the … <\/p>\n