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Santo Domingo.- The Internal Taxes Agency (DGII) interim director yesterday confirmed that the measure for the Customs Agency to again charge the ITBIS Tax as announced by Treasury minister Vicente Bengoa aims to heighten the controls.

Germania Montas said Treasury is aware that if the ITBIS is charged during an import it provides more control, a measure she affirms other countries apply and is essentially “to improve the control that Customs exerts on imported merchandise.”

She said the mechanism consists in that the ITBIS is paid on the import and when it is declared in Internal Taxes, that tax paid is deduced and that element should be neutral.

The official, interviewed after a mass in the Church Don Bosco to mark the Internal Taxes 13th anniversary, said the measure doesn’t have any impact for the DGII, since it is essentially for Customs.

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COMMENTS
7 comment(s)
Written by: JimHarrington This user is banned, 28 Jul 2010 9:05 AM
From: United States
That is an incorrect statement. It is not neutral amount.
The Itibs if charged at Aduana is the start of a flow through charge. Since the Itibis is charged on the original import it will be lower than the final Itibis when the product is finaly sold.
Since the DR government is hungry for cash since no one is lending it has to come up with additional upfront cash.
This procedure is not a bad thing however it will increase the amount of paperwork for both the government and private companies.
Written by: juanb, 28 Jul 2010 9:27 AM
From: Dominican Republic
Heighten controls, my ass.

This is just another tax so that the gobernistas have more of our money to waste.
Written by: bernies, 28 Jul 2010 10:16 AM
From: United States, key west fl
Hey Juan with this new measure it will make it a lot easier to clear packages from customs. For the simple reason that you no longer need to wait for two government institutions to get the amount of how much need to pay in taxes to clear your goods.
Written by: juanb, 28 Jul 2010 10:26 AM
From: Dominican Republic
Will it result in the Itbis being paid twice? Once on entry and again at time of sale?
Written by: BASTA, 28 Jul 2010 4:42 PM
From: Dominican Republic, =Ghetto/Legalize Drugs
but of course x3
Written by: Ricardolito, 28 Jul 2010 5:58 PM
From: Dominican Republic, vieja Santo Domingo
juanb I am confused ..you have said that regrettably we need more taxes here because there is no other feasible way to pay for all the interest on the loans we have but you oppose this tax , I do not understand . maybe you can tell us more
Written by: jhcl2012, 29 Jul 2010 10:32 AM
From: United States
It simply looks to me that the "importer/ el business" must pay ITBIS upfront and will get it back when the "sale" of the is made:

1. This force the business to spend capital on taxes instead of the using to run the business (bad).
2. The business now has to do more paperwork to recover the difference between the DGA ITBIS and the SALE ITBIS (I'm assuming the value of the merchandise is lower at DGA than the "sale" price) = (bad).

As a result, the business will have less resources to function effectively, leading to less commerce, leading to "loss" of tax revenue and a worsening economy.
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