The government could have cut the ITBIS tax in 2015 to comply with Law 253-12, but will be acting on the provision that made the decline in the tax conditional on achieving a 16% tax burden in 2015. As reported, the tax burden is 14%. In the DR, a small sector bears a much higher tax burden, but when spread over the economic population, a relatively low average of 14% is reported. <\/p>\n
Furthermore, National Commercial Businesses Organization (ONEC) president Ernesto Martinez says that the tax burden will never truly reflect the taxes that are paid until there is a reduction in informal operations. Most businesses in the DR are informal and Martinez said that if the government had chosen to reduce the ITBIS the economy would have grown. <\/p>\n
Tax Reform Law 253-12 establishes an increase in the ITBIS from 11% to 13% for selection of items. Other items, including milk, coffee, oil, sugar, chocolate, that paid 8% in 2014 will now be taxed at 16%. <\/p>\n
The government told Diario Libre that the formal announcement would be made on Monday 22 December 2014. <\/p>\n
http:\/\/www.diariolibre.com\/economia\/2014\/12\/19\/i933051_gobierno-mantendr-cobro-del-itbis-porque-logr-meta.html<\/p>\n","protected":false},"excerpt":{"rendered":"
The government could have cut the ITBIS tax in 2015 to comply with Law 253-12, but will be acting on the provision that made the decline in the tax conditional on achieving a 16% tax burden in 2015. As reported, the tax burden is 14%. In the DR, a small sector bears a much higher … <\/p>\n