Dominican Republic to cull big tax breaks

Santo Domingo.- The Dominican Government will begin the gradual dismantling of tax exemptions on fuels received by electricity generating companies established in isolated systems or for their own non-interconnected consumption until the complete elimination of that privilege.

In a letter sent to companies in the sector, the government notified that the measure is part of the financial organization process of the State to strengthen its collection capacity and achieve fiscal sustainability.

The letter indicates that these generators sell their energy to private companies, hotels or for their own generation of a commercial activity, so their commercial rates can reflect their operating costs.

“It is taken into consideration that a high percentage of electricity sales in current isolated systems have commercial rates that could allow these taxes to be part of the operating costs of the businesses that operate there, freeing the State from an expense or important tax burden, which will contribute to the reduction of the fiscal deficit that each year the Dominican State has to face and assume,” it said.