The Asociación de Concesionarios de Fabricantes de Vehiculos (Acofave) forecasts that prices of some brands of cars will increase 40% as a result of the passing of the "paquetazo". The combination of increases on the luxury item tax that affects vehicles and the increase in the ITBI tax that has gone up from 8 to 12%, will add up to 40% increases in some cases. The Acofave, that represents importers of vehicles in the DR, forecasts massive firings of employees in dealerships. The association said that sales were up 60% in days prior to the passing of the law, as consumers sought to get ahead of the anticipated price increase. Vehicles in the DR pay a 20% tax. The extra tax (luxury tax) is as follows: tax rate of: The new taxes on vehicles are: Vehicles up to US$10,000 will not pay the luxury tax. Vehicles from US$10,0001 to US$12,000 pay 15%. Vehicles from US$12,0001 to US$14,000 pay 30% Vehicles from US$14,001 to US$20,000 pay 45%. Vehicles from US$20,001 to US$31,000 pay 60%. Vehicles from US$31,001 and above pay 80%.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Asociación de Concesionarios de Fabricantes de Vehiculos (Acofave) forecasts that prices of some brands of cars will increase 40% as a result of the passing of the "paquetazo". The combination of increases on the luxury item tax that affects vehicles and the increase in the ITBI tax that has gone up from 8 to … <\/p>\n