Weekly Report - 21 November 2006

DOMINICAN REPUBLIC: Tax reform. President Leonel Fernández delivered a long-awaited speech on 14 November outlining some fiscal reform proposals which he argues are essential to preserve the country's impressive growth rate. The "fiscal rectification" bill will go to congress this week. Fernández revealed scant details: "a few more items" will now be taxed with the 16% ITBIS (VAT); a 10% tax will be applied to insurance; 5% on hotel rooms; and there will be increased taxes on alcohol, tobacco and luxury goods. Fernández said the fiscal reform would bring the government an extra DR$17.5bn (US$530m); the government plans spending cuts to raise a further DR$17.5bn.

End of preview - This article contains approximately 329 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

• Subscribe
• Sign up for a one-time, 14-day trial