Recently, the Minister of Economy, Planning and Development, Miguel Ceara Hatton, announced that in the tax reform which is in preparation and will begin to be discussed shortly, it plans to apply taxes to goods and services which are now exempt.
The minister said there are plans to extend the tax on transfers of industrialized goods and services (Itbis) to more products. However, he said the food in the basic basket would be protected and the rate, which currently stands at 18 percent, could be lowered.
Among the food products which, according to information from the General Directorate of Internal Taxes (DGII), are exempt from payment of the Itbis are live animals, fresh, chilled and frozen meats, fish for current consumption or breeding, dairy products (except yoghurt and butter), milk and honey.
Other animal products that do not pay Itbis are plants for planting, vegetables, unprocessed tubers for mass consumption, unprocessed fruits, mass consumption, unassisted, non-caffeinated coffee and pods and pods of coffee. The exemption also applies to cereals, flour, processed grains and milling products.
This tax is also not paid on the purchase of oilseeds and other seeds (for fat, seedlings or animal feed), on sausages or cocoa beans, whole or broken, raw. or roasted, husks, husks and other cocoa residues.
Up to now financial services, including insurance, pensions and pensions, land transport of people and goods, electricity, water and garbage collection, rental of houses, health, l education and culture, funeral services and those of beauty salons and hairdressers are also exempt from Itbis payment.
What did the president say?
In his last speech on the occasion of his first year in office, the President of the Republic, Luis Abinader, explained that tax reform would be an integral part of the transformation of the public expenditure and revenue system through greater efficiency and the creation, elimination or reduction of taxes, to promote economic growth with development and to ensure the sustainability of finances.
The president and other officials also said the reform will aim to increase taxes on wealth and wealth; it will mainly affect those who have it the most.