Fiscal reform is passed and sent to President
Diario Libre
SANTO DOMINGO. The tax reform is now law and it was sent yesterday to President Danilo Medina for its enactment, after the Chamber of Deputies freed it from the process of reading the debates and approved it after the second reading, without modifications.
The Chamber accepted a proposal from the spokesman of the Dominican Liberation Party (PLD), Gustavo Sanchez, so there was no discussion. It was approved by the vote of 103 to 66. Five deputies did not vote.
From the bloc of the Reformists, only Victor (Ito) Bisono voted against the proposal together with Guadalupe Valdez of the APD, a former ally of the PLD and the 64 members of the PRD.
Sonya Abreu de Romero and Hugo Tolentino Dipp of the PRD and Minou Tavares Mirabal, Marino Hernandez and Eduardo Higaldo of the PLD did not vote.
There was one incident with Deputy Jose Jaquez of the Dominican Revolutionary Party, who complained that the proposal was not debated. "This is not possible, that no opportunity is given to those of us who could not talk in the last session," Jaquez complained. He accused the PLD of imposing its will through the use of "political bullying."
Once again several proposals for changes to the legislative proposal offered by Ramon Rogelio Genao were rejected. These proposals sought to eliminate the tax on purchases over the Internet; another proposal made by Pelegrin Castillo which sought to include aspects regarding a program of energy savings and renewable energy was also rejected.
The proposal for new taxes, with which the government seeks to collect an estimated RD$46 billion, will be immediately applied, since nowhere does it say in its contents that it would enter into force beginning in January 2013.
Regarding the Movie Law, what it establishes is that beginning with the enactment of the law, the tax credits foreseen in Article 29 of Law 108-10-which deals with the promotion of movie picture production-of 29 July 2010 and its modifications, should be used exclusive by the producer in order to fulfill his tax obligations.
The original proposal eliminated Article 39.
The bill also keeps the 10% tax on restaurant and bar bills, supposedly used for tips.
The tax amnesty for all taxpayers will be approved by a law which will be sent to the legislature after the enactment of the tax reform law.
The legislation does not prohibit the import of used clothing, rags and shoes, in packs.
The earning obtained through the prices of sports betting parlors and lottery tickets will be taxed at 10% for the first RD$500,000; 15% up to RD$1,000,000 and 25% over RD$1,000,001.
The application of the value-added tax, the ITBIS, was removed from most processed meat products, such as hotdogs, salamis, chorizo, blood sausages and other sub-products.
More details
The application of the 1% tax on motor vehicles was postponed until 2014, and the 1% tax on the total value of properties belonging to one person will be applied starting at RD$6.5 million instead of RD$5.0 of million assessed value.
The tax on the transfer of properties was left at 3% instead of the 4.5% that was in the original proposal. Regarding the Law on Renewable Energy in which a 75% tax exemption on income tax is established, the new tax reform reduces this exemption to 40%. In the meantime, with relation to the increase of the ad valorem tax on Avtur (jet fuel), from 8% ad valorem it was reduced to6.5%.
The 5% tax on the sale of textiles and shoes made in the free zones, established in Law 56-07, and the proposal also includes in the exemption from the ITBIS cultural activities as well as educational services.
President Danilo Medina might modify or remove any tax in the reform package, whose application might be impractical or cause serious harm to the different sector to which it is directed.
This was revealed yesterday by the president of the Senate, Reinaldo Pared Perez, who is also the secretary general of the PLD. Pared Perez said that the attitude of President Medina is not one of insensitivity or of keeping a disposition anyway possible.
"If, when they are being applied, some of these dispositions in the reform package need to be modified or eliminated, he will do so," Pared stressed. He recalled that a similar situation happened three years ago when there was an increase in the selective consumer tax on beers, which after it was approved, it was eliminated.
The Chamber accepted a proposal from the spokesman of the Dominican Liberation Party (PLD), Gustavo Sanchez, so there was no discussion. It was approved by the vote of 103 to 66. Five deputies did not vote.
From the bloc of the Reformists, only Victor (Ito) Bisono voted against the proposal together with Guadalupe Valdez of the APD, a former ally of the PLD and the 64 members of the PRD.
Sonya Abreu de Romero and Hugo Tolentino Dipp of the PRD and Minou Tavares Mirabal, Marino Hernandez and Eduardo Higaldo of the PLD did not vote.
There was one incident with Deputy Jose Jaquez of the Dominican Revolutionary Party, who complained that the proposal was not debated. "This is not possible, that no opportunity is given to those of us who could not talk in the last session," Jaquez complained. He accused the PLD of imposing its will through the use of "political bullying."
Once again several proposals for changes to the legislative proposal offered by Ramon Rogelio Genao were rejected. These proposals sought to eliminate the tax on purchases over the Internet; another proposal made by Pelegrin Castillo which sought to include aspects regarding a program of energy savings and renewable energy was also rejected.
The proposal for new taxes, with which the government seeks to collect an estimated RD$46 billion, will be immediately applied, since nowhere does it say in its contents that it would enter into force beginning in January 2013.
Regarding the Movie Law, what it establishes is that beginning with the enactment of the law, the tax credits foreseen in Article 29 of Law 108-10-which deals with the promotion of movie picture production-of 29 July 2010 and its modifications, should be used exclusive by the producer in order to fulfill his tax obligations.
The original proposal eliminated Article 39.
The bill also keeps the 10% tax on restaurant and bar bills, supposedly used for tips.
The tax amnesty for all taxpayers will be approved by a law which will be sent to the legislature after the enactment of the tax reform law.
The legislation does not prohibit the import of used clothing, rags and shoes, in packs.
The earning obtained through the prices of sports betting parlors and lottery tickets will be taxed at 10% for the first RD$500,000; 15% up to RD$1,000,000 and 25% over RD$1,000,001.
The application of the value-added tax, the ITBIS, was removed from most processed meat products, such as hotdogs, salamis, chorizo, blood sausages and other sub-products.
More details
The application of the 1% tax on motor vehicles was postponed until 2014, and the 1% tax on the total value of properties belonging to one person will be applied starting at RD$6.5 million instead of RD$5.0 of million assessed value.
The tax on the transfer of properties was left at 3% instead of the 4.5% that was in the original proposal. Regarding the Law on Renewable Energy in which a 75% tax exemption on income tax is established, the new tax reform reduces this exemption to 40%. In the meantime, with relation to the increase of the ad valorem tax on Avtur (jet fuel), from 8% ad valorem it was reduced to6.5%.
The 5% tax on the sale of textiles and shoes made in the free zones, established in Law 56-07, and the proposal also includes in the exemption from the ITBIS cultural activities as well as educational services.
President Danilo Medina might modify or remove any tax in the reform package, whose application might be impractical or cause serious harm to the different sector to which it is directed.
This was revealed yesterday by the president of the Senate, Reinaldo Pared Perez, who is also the secretary general of the PLD. Pared Perez said that the attitude of President Medina is not one of insensitivity or of keeping a disposition anyway possible.
"If, when they are being applied, some of these dispositions in the reform package need to be modified or eliminated, he will do so," Pared stressed. He recalled that a similar situation happened three years ago when there was an increase in the selective consumer tax on beers, which after it was approved, it was eliminated.
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