The Dominican Government will begin the gradual dismantling of the exemptions taxes on fuel received by electricity generating companies established in isolated systems or for their own non-interconnected consumption until the complete elimination of that privilege.
In a letter sent to companies in the sector, the government notified that the measure is part of the financial organization process of the State to strengthen its collection capacity and achieve fiscal sustainability.
The letter indicates that these generators sell their energy to private companies, hotels or for their own generation of a commercial activity, so their commercial rates can reflect their operating costs.
“It is taken into consideration that a high percentage of electricity sales in current isolated systems have commercial rates that could allow these taxes to be part of the operating costs of the businesses that operate there, freeing the State from an expense or tax burden. important, which will contribute to the reduction of the fiscal deficit that each year the Dominican State has to face and assume”, he establishes.
Impacted companies
In addition to the generator Corporación Energética Turística Juanillo (Cap Cana Caribe), they receive the exemptions the Punta Cana-Macao Energy Consortium, the Punta Cana Tourism Services Corporation, Costasur Dominicana-Casa De Campo, Generadora Eléctrica de Samaná, the Bayahibe Electricity Company, Cementos Cibao and the Dominican Corporation of State Electric Companies (Alto Bandera), according to a document that manages Free Journal.
In the letter, signed by the Ministers of Finance, José Manuel -Jochi- Vicente, and the Minister of Industry, Commerce and Mipymes, Víctor -Ito- Bisonó, and the Superintendent of Electricity, Rafael Velazco, it is indicated that, in any case, For the calculation of the tariff schedules of each concessionaire, the Superintendence will take this condition into consideration (the dismantling of the exemptions) that could be reflected in supply costs.
“This review is intended to cover a complete evaluation of 100% of the fiscal expenditure referring to the exemptions of fuels to be gradually dismantled, in terms of time, by class of beneficiary, who are granted said exemptionsas well as the type and amount of fuel that is currently exempted,” he adds.
The document adds that the first stage of the dismantling is focused on generating companies established in isolated systems or non-interconnected own consumption.
The government maintains that it has been analyzing the annual tax expenditure in order to eventually gradually dismantle said fiscal sacrifice, which is manifested in this case by exemptions fuel taxes.
