SANTO DOMINGO, Dominican Republic (AP) — The Dominican government said Thursday that it plans to increase or implement new taxes to generate some $800 million in additional revenue a year to offset a surge in oil prices blamed on the Iran war.The proposals include a 30% income tax hike for three years on companies in the Caribbean country that earn more than $17 million a year. Other proposals include a $10 increase on airline tickets and additional taxes on casinos, gambling and electronic cigarettes.The administration of President Luis Abinader also proposed to impose customs taxes on certain imports and monitor items including cigarettes and alcoholic beverages.To ease the financial burden on the most impoverished, the government said tax exemptions would apply to micro-enterprises and those earning less than $680 a month. The country of 11.6 million people has a 17% poverty rate.
The Dominican Congress, which is dominated by Abinader’s party, is scheduled to debate the proposals but are expected to approve them.Shortly after the announcement, a group of Dominican business leaders who belong to the National Council of Private Enterprise suggested that the government focus on the informal sector and broaden the tax base to increase revenue without affecting those who already pay their taxes.
