DR: Taxing Dominicanos to death to please the IMF

According to the fiscal reform proposal the government will present as per the agreement with the International Monetary Fund, locals would pay more taxes for telecommunications. As reported in El Caribe, the government plans to increase these surcharges as well as those of many other categories. Titled “Fiscal Adjustment for Sustainable Growth in the DR,” the proposal that would make calling more expensive was submitted by Hector Guiliani Cury from the Central Bank and consultants Glenn P Jenkins and Chun-Yan Kuo from the Department of Economics of Queen’s University (Canada). It suggests an increased telecommunications tax of 10% to generate RD$1 billion more in annual revenues. Thus, telecommunications would pay 24% in total taxes, up from the present levels of 2% to the Dominican Telecommunications Institute and 12% for the ITBIS (the DR’s VAT).