Faced with the effects of the tax reform, which came into full force on 1 January 2013, President Danilo Medina called on the Dominican people to work harder to overcome the difficulties. After attending a Mass for a Day of Peace at the Santo Domingo Cathedral on New Year’s Day, the President also asked his fellow citizens to show solidarity with “their brothers who have the least,” in order to achieve what he described as “a better Dominican Republic for everyone.”<\/p>\n
Yesterday, Tuesday 1 January, the increase in the Tax on the Transfer of Industrialized Goods and Services (ITBIS) from 16% to 18% went into effect as well as an 8% tax on a large number of food items including sugar, coffee and edible oils, among other products now subject to ITBIS. With its application the government plans to collect some RD$13 billion more in 2013. <\/p>\n
The DGII also announced the start of the new formula for calculating the IPI property tax. As of 1 January 2013, all values of property owned by a single owner are being added and there is a RD$5 million deduction. Up until now, the IPI tax had applied to every individual property. <\/p>\n
The new taxes that began to be implemented in November 2012 complete the measures included in Law 253-12 that was passed last year to compensate for the record-breaking fiscal deficit the Medina administration inherits from its predecessor, the PLD government led by former President Leonel Fernandez. <\/p>\n
The government hopes to collect RD$45 billion in order to cover the fiscal deficit that is said to be more than RD$180 billion. This law also increases the tax on alcoholic beverages from 7% to 15%. Prior to the start of implementation of the law, most basic food prices were increased. <\/p>\n
www.presidencia.gob.do\/noticia.php?type=release&id=925<\/p>\n
www.dgii.gov.do\/legislacion\/leyesTributarias\/Documents\/ley253-12.pdf<\/p>\n","protected":false},"excerpt":{"rendered":"
Faced with the effects of the tax reform, which came into full force on 1 January 2013, President Danilo Medina called on the Dominican people to work harder to overcome the difficulties. After attending a Mass for a Day of Peace at the Santo Domingo Cathedral on New Year’s Day, the President also asked his … <\/p>\n