Santo Domingo.- Talk of easing the tax burden in the heels of dwindling income makes no sense while some economic sectors get excessive tax breaks in Dominican Republic, noted Internal Taxes (DGII) director Juan Hernandez.
The official said despite the Agency’s “excellent” collection is evidenced with a jump from RD$60.0 billion in 2004 to more than RD$248 billion by year end, a 313% growth, the tax burden in the Tax Revenue-to-GDP proportion, was relatively low at 13% in 2011, falling from the 16% in 2007.
He cautioned that GDP growth-revenues comparisons should be analyzed at tax burden levels for the sectors to explain such growth in recent years, since in his view the sectors with sustained GDP growth are mostly those with a low tax burden.
That’s the reason why, Hernandez said, that talk of reducing the tax burden isn’t valid because of a fall in income.
The official headed the inaugural for the International Seminar "Experiences in the Control Process in the Region’s Tax Administrations," hosted by the DGII to mark its 15th Anniversary at the Central Bank Friday.
As evidence of distortion Hernandez cited the cases of the Agricultural, free trade zones and mining sectors, that latter which despite a 63% growth last year has yet to contribute one peso in revenue, since Falconbridge Xstrata is on hold and Barrick Gold hasn’t even begun production.