The Puerto Plata Report: news and travel info from the Dominican Republic's north coast

Government lifts tax to kick-start construction

From dr1.com

According to Superintendent of Banks Rafael Camilo, there is a housing deficit of 975,000 units, and the government is taking new steps to help fill the need. According to Diario Libre, yesterday the government issued instructions for the materials used in the construction of housing units with construction costs of under RD$1.4 million to be exempted from income tax, ITBIS (VAT) tax, and other taxes, as part of a plan to get the economy moving via the construction sector.
The exoneration of taxes for materials used in housing construction is expected to “kick-start” the economy through the construction sector that is known to create more jobs and have a trickle-down effect on other industries.
The measures will be implemented through the administration of the Department of Taxes (DGII), while the Congress discusses the legislative proposal that will be sent by the President’s Office today.
The measures come in response to requests from the construction sector and the small and medium business sector. The President and his economic cabinet met with representatives of these sectors yesterday.
Camilo acted as spokesman for the government and told the press after the meeting that it was agreed that the Central Bank is also studying a mechanism that will fix mortgage interest rates on middle class housing for three years. Camilo reported that just what that rate will be is not yet known but the decision could be taken in two weeks time.
Camilo also said that the government is exploring the possibility of donating state lands for the construction of low-cost housing projects.
According to studies, a house that would sell for RD$1.4 million would be between 75 to 80 square meters, and cost between RD$800,000 to RD$900,000 to build with the tax exemptions and the so-called land bonus the government would provide.

Filed Under: Puerto Plata Regional News

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