SANTO DOMINGO – The initiative to refund the tax on the transfer of industrialized goods and services (ITBIS) to tourists is expected to generate an increase in visitor spending in local businesses, which would positively impact the Dominican economy.
Similarly, businesses that depend on the tourism sector will find it more attractive to foreign visitors who will then benefit from the advantages offered by the Dominican Republic, according to finance specialists.
“The impact on finances would be very significant because it would incentivize and increase tourist spending when they visit our country,” Eladio Frías told EL DÍA .
For his part, Jasson Gómez said that the tax refund could benefit tourists by preventing double taxation, since these expenses can be included in the tax returns filed in their countries of residence.
He also explained that the objective of this law is to promote increased tourism, thereby boosting the country's economy. However, this also presents a significant challenge to tax laws in preventing evasion through this type of travel.
However, regarding the issue, economist Juan Ariel Jiménez pointed out that the tax refund will have a low impact on finances, since most tourists come to the all-inclusive model, where most of the spending is done when paying for the tour package.
He indicated that visitors don't go out to the towns to make purchases subject to the ITBIS tax. "Where it would have the greatest impact would be on cruise ship passengers, who do make more local souvenir purchases, but often don't claim the tax," he noted.
Evaluation:
The president of the Chamber of Deputies, Alfredo Pacheco, said that this project was submitted for study by a special commission. “All the elements are being gathered, because it is a very important factor that we will consider, as this will boost tourism.”
Bill
Several members of parliament have introduced a bill that seeks to stimulate tourist spending in the Dominican Republic through the refund of the ITBIS (Value Added Tax).
Source: El Día
Photo: El Día
