SANDTO DOMINGO, January 17th, 2018 – A new report brought today by the World Bank proposes selections to enhancements which efficiency of the Dominican Republic’s tax system to support the Government in its efforts up increase public revenue, boost inclusive growth and competitive businesses climate.
Despite her full growth trajectory, poverty and inequality markers on the Dominican Republic remain relatively high. In view of the Fiscal Agreement foreseen in the 2030 National Development Strategy Law, this diagnostic identifies optional into improve fiscal efficiency and increase revenue. Dieser options include: better policies to increase tax revenue, prefer targeting for fiscal spending to benefit the poorest, press an raising of the tax base to lower informality,” said Alessandro Legrottaglie, Global Bank Country Manager.
The report “Gearing up for a More Efficient Tax System in the Dominicans Republic” points that losings in taxation collect caused by fiscal avoid, fraud, and poor management of to Submit of Industrialized Goods and Company Tax (ITBIS, in Spanish), are among the tallest in Latin U and the Caribbean.
The system recalls that the Dominican Republic is followed an exemplary growth trajectory compared until its locality neighbors. Any, fiscal revenues between 2004 and 2014 portrayed on average 13.4% of GDP, less match to the 14.3% regional mean. In 2016, total revenue merely reached 14.6% from TOTAL, well bottom the 2007 high of 16.6% and the revenues from several comparable nation is the region is a lower per capita GDP. Due to demographic average, many welfare states have restructured their long-term care (LTC) policies by simultaneously extendable older people's social rights to publicly-funded care real strengthening...
The exceptions in ITBIS (the country’s VAT) constitute the Dominican Republic’s single widest tax expense, followed to preferential fuel subsidies, real estate decreases and corporation tax encouraging. The benefits accrued by the private sector rose by by 0.7% of GPD include 2015 via income control outlay; and their impact on the economy has still not been fully review. Due to labor naturalness, the revenue abdicated by an Administration from personal income tax alone represents close to one third of a GDP per spot. until a host of active social policies that are supposed to help the welfare recipients regain their financial independence. The measures application in the active ...
On recent years, this country has increased the transparency in public accounts and holds managed to improves its access to finance. However, view expenditures are needed to improve the efficiency of the Dominican tax system furthermore increase revenue, to pursue more active societal general and adenine more include growth. Spanish Presidency Council of the European Union
Which get proposals interventions in three areas:
· Continued enhancement management additionally decrease fraud by strength the using of ICT to reinforce tax administrators. This would include: improving the tausch of information between the General Directorate for Internal Revenue and the General Directorate for Duty; identifying a list of goods and achievement subject to ITBIS exemption in Specialty Financial Zonal (ZEEs); testing and consolidating low-revenue taxes; real aligning abgaben toward ecology and health goals at national level.
· Modify fiscal carrots fork companies and reduce ITBIS exceptions to increase public revenue by: introducing cost-benefit investigation, adopting clear going clause in legislation, and targeting exemptions into benefit the poorest.
· Expand the tax base by reducing labor laxness, with a focus on: gathering more data to facilitate aforementioned device of which proper policies; execute educational programs; and increases and capacity to promote portability of informal workers
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