3Q tax revenue falls 3.3% short of estimate, paced by auto imports

Santo Domingo.- This year’s tax revenues are falling short. To September 30 collection surpassed 8.9% compared with the same 2010 period, but 3.3% below the estimate

The fiscal performance was the result of a combination of spikes in important tax revenue sources and offices.

The Customs Agency posted a considerable increase, but Internal Taxes fell short of its projections.

Vehicle imports fell to 5,183 units in the first nine months compared with the same year ago period, according to Ministry Treasury figures. The 17% tax on new vehicles (first license plate) fell 1.6% on an 11.2% fall in the FOB value of imported vehicles. In terms of units, 41,198 vehicles were imported, compared to the 46,381 brought in the dame 2010period.

The fall in revenue expectations, which to the cut- off date was an absolute amount of RD$7.1 billion, is partly attributed to a lower yield in the income for selective taxes on fuels and the tax on specific companies, ITBIS, tobacco and taxes on services.

The Treasury Ministry’s report for the January-September cites RD$205.97 billion in revenue, or 8.9% more than the RD$189.2 billion in 2010, or RD$16.8 billion higher.

However, compared with the estimated income in the current Budget, there was a fall of 3.3%, or RD$7.1 billion less than projected.