Indotel to mediate consultation for municipal taxes

15 Apr 2013

The Dominican Republic’s telecom regulatory body Instituto Dominicano de las Telecomunicaciones (Indotel) has decided to mediate a consultation between municipalities and network providers in order to overcome a local tax collection conflict that has become an obstacle to the expansion of telecommunications services in cities and remote areas of the Dominican Republic. The meeting between representatives of the Dominican Association of Telecommunications Companies (Adomtel), the Dominican Association of Cable TV Companies (ADETEL) and municipal districts will be held on Wednesday 17 April 2013 at Indotel’s headquarters.

The conference will discuss the collection of municipal taxes, antenna installation permits and land use rights for wiring and installation of equipment in towns across the country. According to the Adomtel, although telcos are willing to pay the municipality excises they consider the sector to be highly taxed. A representative of the network providers indicated that regardless of the income tax paid by the companies, end consumers are still paying 30% of the final bill: 18% value added tax (ITBIS), 10% selective consumption tax and 2% for the development of telecommunications in the country.

Dominican Republic, Dominican Telecommunications Institute (Indotel)