Hernandez says that in the DR there are too many tax exemptions
He says the sectors that produce GDP growth have little tax pressure
Diario Libre
SANTO DOMINGO. In the Dominican Republic certain economic sectors have been favored with the application of excessive tax exemptions, which invalidates talking about a reduction o the tax burden because of a decrease in income.
The suggestion was made by the director of Internal Taxes (DGII), Juan Hernandez, who said that the entity has had an excellent performance, going from the collection of RD$60,0 billion in 2004 to more than RD$248 billion at the end of this year, an increase of 313%.
Nevertheless, he pointed out that in spite of this extraordinary growth, the tax burden that is expressed as the Tax Income/GDP, is considered to be relatively low, since it is near 13% in 2011, which then questions the fact that it was at 16% in 2007.
He warned that when comparisons are made between the GDP growth and the tax collections, the tax load on those sectors that explain the growth should also be analyzed. This is because over these last few years the sectors that have supported the GDP growth to a greater degree belong to sectors with a smaller tax burden. It was in this sense that he said that it is not valid to speak of a reduction of the tax load motivated by the fall in income, but of an application of tax policies that have favored certain economic sectors with excessive tax exemptions.
Hernandez made his comments s he inaugurated the International Seminar "Experiences in the Process of Control in the Tax Administration of the Region," sponsored by the DGII within the framework of its XV Anniversary, and held last Friday in the Salome Ureña Auditorium at the Central Bank.
He cited the cases of the farming sector, the Industrial Free Zones or the Mining sector that grew this last year by 63% and has not paid a single peso in taxes, since Falconbridge is on hold and Barrick Gold has not even begun mining operations.
Results
Hernandez stressed that polls show that 89% of taxpayers have a positive image of the DFII, 94% are of the opinion that the DGII is modern, 90% think it is organized and 82% say that it is efficient.
Likewise, 91.1% say that it is trustworthy, 89.1% feel that it is transparent and 93% say it is not a corrupt entity, and for this he expressed his appreciation to the personnel that works there.
Positioning
The DGII of the Dominican Republic occupies a privileged position among the Latin American administrations, with an adequate distribution of its personnel, salaries subject to individual performance and general results. In addition, the entity has a viable database and between 2006 and 2010, together with Argentina, was the administration that multiplied by 5 the number of hits through the Internet, according to IMF specialists in Tax Administration.
The suggestion was made by the director of Internal Taxes (DGII), Juan Hernandez, who said that the entity has had an excellent performance, going from the collection of RD$60,0 billion in 2004 to more than RD$248 billion at the end of this year, an increase of 313%.
Nevertheless, he pointed out that in spite of this extraordinary growth, the tax burden that is expressed as the Tax Income/GDP, is considered to be relatively low, since it is near 13% in 2011, which then questions the fact that it was at 16% in 2007.
He warned that when comparisons are made between the GDP growth and the tax collections, the tax load on those sectors that explain the growth should also be analyzed. This is because over these last few years the sectors that have supported the GDP growth to a greater degree belong to sectors with a smaller tax burden. It was in this sense that he said that it is not valid to speak of a reduction of the tax load motivated by the fall in income, but of an application of tax policies that have favored certain economic sectors with excessive tax exemptions.
Hernandez made his comments s he inaugurated the International Seminar "Experiences in the Process of Control in the Tax Administration of the Region," sponsored by the DGII within the framework of its XV Anniversary, and held last Friday in the Salome Ureña Auditorium at the Central Bank.
He cited the cases of the farming sector, the Industrial Free Zones or the Mining sector that grew this last year by 63% and has not paid a single peso in taxes, since Falconbridge is on hold and Barrick Gold has not even begun mining operations.
Results
Hernandez stressed that polls show that 89% of taxpayers have a positive image of the DFII, 94% are of the opinion that the DGII is modern, 90% think it is organized and 82% say that it is efficient.
Likewise, 91.1% say that it is trustworthy, 89.1% feel that it is transparent and 93% say it is not a corrupt entity, and for this he expressed his appreciation to the personnel that works there.
Positioning
The DGII of the Dominican Republic occupies a privileged position among the Latin American administrations, with an adequate distribution of its personnel, salaries subject to individual performance and general results. In addition, the entity has a viable database and between 2006 and 2010, together with Argentina, was the administration that multiplied by 5 the number of hits through the Internet, according to IMF specialists in Tax Administration.
Diario Libre
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