The Government of the Dominican Republic has presented a tax reform that includes a tax increase on casinos and gambling. This is a plan to address the effects of the international crisis.
The Minister of Finance and Economy, Magín Díaz, explained that “the goal of the reform is to “strengthen the sustainability of public finances and protect the most vulnerable sectors amid the ongoing international crisis,” as well as “combat evasion and informality”
The bill, with which the Government expects to collect around $850 million annually, will be sent to Congress this week.
The main fiscal consolidation measure proposed is the increase from 27 to 30% of the income tax (ISR) on large companies, those that last year generated revenues of more than 1,000 million pesos (about $16.6 million), which will apply for three years.
An increase is also applied to the taxation of casinos and gambling and to the charge on bank transfers, and a single fee of $10 is established for air tickets, in addition to a selective consumption tax on electronic cigarettes, among other measures.
It should be noted that another bill was recently presented in the Senate to transform the National Lottery into a decentralized State body, granting it financial and administrative autonomy and expanding its regulatory powers over the gambling industry.