Select Hotels to Get Tax Break in the Dominican Republic

The offices of the Department of Taxes and Customs inthe Dominican Republic have agreed to scrap, as from September, the tax levied on products used by select companies of the tourism industry that have the approval of the Ministry of Tourism.

According to local newspaper Hoy, Tourism Minister Felix Jimenez made the announcement as part of a series of incentives that the government has introduced to assist the tourism sector.

In January, taxes and import tariffs on raw materials used by a selection of local companies to produce items destined for the tourism sector will be removed.

These actions come on the heels of complaints about the application of Law 158 that regulates tourism. The law says that items imported for use by the hotel sector are to enter tax-free.

These new measures will be in force until January 2007 when other dispositions will take effect. Internal Revenue director general Juan Hernandez signed off on the agreement.

The Ministry of Tourism will approve the companies that can adhere to the provision.