The Dominican Republic’s Tax Administration opened a public consultation on proposed amendments to Regulation No. 1-18 on the Selective Consumption Tax (ISC). The proposal would revise rules on the tax base, Suggested Retail Price (PVP), vaping products, licensing and tax controls.
The Dominican Republic’s Tax Administration opened the public consultation on 21 September 2026 on a draft decree proposing amendments to Regulation No. 1-18 for the application of the Selective Consumption Tax (ISC) under Title IV of the Tax Code.
The proposed changes would align the regulation with Law No. 30-26 and introduce revised rules on the tax base, Suggested Retail Price (PVP), taxable goods, licensing, traceability and tax controls.
Under the proposal, the PVP for goods subject to the ad valorem component would include costs, charges, margins, related services and other economic elements incorporated into the product up to its sale to the final consumer. Packaging, distribution costs, production expenses and commercial margins could not be deducted from the PVP.
The draft would also bring electronic cigarettes, vaping devices and their consumables within the ISC regulatory framework, including registration, licensing, importation, storage, traceability and tax control requirements. Manufacturers and importers would have 90 days from the decree’s entry into force to comply, without suspending ISC payment obligations during the transition.
Manufacturers and importers would be required to declare their PVP annually and update it where prices changed by 5% or more or before new products were introduced. The Tax Administration would also be able to review and object to declared prices.
Other proposed measures would cover licensing requirements for alcohol, tobacco and vaping products, ISC refunds for pharmaceutical manufacturers using ethyl alcohol as a raw material, life insurance tax treatment, maquila manufacturing, and controls over losses and spills.
The draft would further strengthen inspection and digital traceability through fiscal stamps, unique digital codes and electronic systems, with uniform control mechanisms for domestic and imported goods.
The public consultation will close on 25 November 2026. Questions and comments can be submitted through the “submit comments” form accompanying the publication.
