Prodetel criticises tax increase proposals

5 Dec 2008

BNamericas is reporting that Prodetel, the Dominican Republic’s telecommunications professionals association, has announced it will support opposition to increased taxation on telecom services. Operators have objected to plans by municipalities to add a further 3% in taxation to services; services currently include a 16% industrial goods and service transfer tax (ITBIS), a 10% selective consumer tax and a 2% tax that operators pay into the universal services fund. Prodetel has called for the plans to be scrapped, and in addition recommended that a current 10% consumer tax be removed, which it claims is negatively impacting end-users. Prodetel claims that the proposals directly contradict regulator Indotel’s call to reduce the digital divide. Additionally the association claims that if the proposals are implemented the Dominican Republic would become ‘the country with the second highest taxation on telecommunications services in the world’.

Dominican Republic, Dominican Telecommunications Institute (Indotel)