Local May 12, 2024 | 11:01 am

Candidate proposes ITBIS reduction

Santo Domingo.- The candidate for deputy of the País Posible Party, Tomás Hungría, proposed a reform to Law 11-92 of the Tax Code as one of the organization’s legislative initiatives. He indicated that adapting the Tax Code must include an integral fiscal and tax reform.
“One of the modifications that we propose from the organization is the reduction of the ITBIS from 18% to 15% and a universal broadening of the base for this tax to include all goods and services,” said the candidate, who has more than 35 years of experience in the hospitality industry.

He adds that, along with reducing ITBIS to 15%, a special ITBIS of only 10% would also be created for hotels, restaurants, and bars throughout the country, benefiting foreign tourists, locals, and residents.

In addition, the reform would include the total and definitive elimination of the advance payment of income tax, which hinders investments and the creation of new jobs.

Hungary affirmed that the ITBIS is the tax that denotes the true dynamism of the Dominican economy and that to the extent that more purchases and sales of goods and services are produced, the volume of collection of this tax increases.

In his opinion, the monthly advance payment of income tax reduces the purchasing capacity of goods and services of micro, small, medium, and large companies, negatively impacting economic dynamism and creating new jobs.

“The elimination of the advance payment of ISR is a social debt with the micro, small, medium and large companies that only the elected legislators of the País Posible Party will be able to satisfy as of August 16, because the deputies of the traditional parties have not done so”, indicated Hungria.

He also said, “the modification to the Tax Code must contemplate an increase in the tax exemption of educational expenses, so that families can receive a greater benefit for the investment they make in the initial, primary, secondary and university education of children and young people. The cost of academic institutions at all levels is very high, so parents of students should receive a greater annual return from the state for the educational expenditure they make.”

Taxes on air, sea, and land transport

The candidate also proposes creating two new property and circulation taxes on airplanes, small planes, helicopters, boats, and private yachts used for non-commercial purposes.

Likewise, he proposes a differentiation in the annual circulation tax (marbete) for vehicles, which would be directly proportional to the car’s value and engine capacity. “An eight-cylinder vehicle should not pay the same price as a four-cylinder vehicle, and a Mercedes Benz should not pay the same as a Toyota Corolla.”

Hungary supports his candidacy of the National Integration Party (PIN) of Aníbal Diaz Belliard, the Sumando Amigos Movement of Leonardo Faña, and the Electric Front (FELA) coordinated by Ángel Raposo.

Open to proposals

País Posible remains open to proposals and suggestions from large, medium, small, and micro business people to significantly improve the Dominican Tax Code and carry out the integral tax reform that the country needs to continue developing.

He called on the citizens to present their ideas and proposals to enrich the modification of the Tax Code to be carried out by the legislators of the País Posible Party starting next August. He said they hope to accompany President Luis Abinader in carrying out the modifications and reforms to be implemented during his second term of government.

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