Internal Revenue with a RD$17 billion surplus

Juan Hernández, the Director General of the Internal Tax Office (DGII) told Diario Libre reporters that his department could close the year with a RD$17 billion surplus above what was projected in the budget.

Hernández attributed the increment to the incorporation of the system of fiscal invoices and the reduction in tax evasions.

"So far this year, we have collected some RD$14 billion above what was projected in the budget. The idea is that we can collect an additional RD$3.0 billion more, and so we are going to close the year with a budget surplus of RD$17 million" said Hernández.

For 2009, Hernández is projecting that tax evasion will be six percent lower and reach just 20%, and wherein his office is working on various ways to reduce this number even further. These efforts are aimed at cash transactions and are targeting 56,000 potential tax payers.

Hernández talked to reporters after the Mass and other ceremonies celebrating the eleventh anniversary of the foundation of the DGII as it now stands. The Mass was held at Don Bosco Church. He commented that when he arrived at the DGII in August 2004, tax evasion was around 44% and today it is nearer 25%, and for 2009 the aim is to reach less than 20%.

He added that with this goal in mind, his team is working on the installation of fiscal printers for every commercial establishment such as shopping centers, supermarkets and pharmacies. The program will begin in 2009 with the idea of reducing even further the issue of tax evasion.

Together with the VAT (Value Added Tax or ITBIS) and the Income Tax, collections are also improving on taxes on Sumptuous (Luxurious) Housing and other assets.

The Income Budget for 2008 set a goal of 65% of the government's income from the DGII and the rest of the money was to come from Customs and the Treasury as well as donations.