Santo Domingo.- Tax revenues of the Dominican Govt. from the tax on transfers of industrialized goods and services (ITBIS) and income underwent the third largest drop among 12 Latin American countries between January and June.
The year-on-year reduction in revenue from the treasury due to ITBIS and income tax (ISR) was 18% and 17%, respectively, between January and June 2020 compared to the same period last year, according to research by the Economic Commission for Latin America and the Caribbean (Cepal).
The “Economic Study of Latin America and the Caribbean: main determinants of fiscal and monetary policies in the post-pandemic era of COVID-19,” specifies that only in Peru and Ecuador their ITBIS or also called value added tax VAT) fell more than the Dominican Republic, with 20% in both cases.