2006News

Alvarez Bogaert criticizes DR tax policies

Economist Fernando Alvarez Bogaert reported that the Dominican Republic’s tax policies are regressive and the proposed tax correction will exacerbate rather than solve the problem. He explained that a study carried out by Ivan Rodriguez showed that more than 75% of the government’s income came from indirect taxes, and the scheme is followed in the new tax proposals. Alvarez Bogaert explained that such tax income is a regressive since it affects the poor to a larger degree than the rich. Direct taxes have the opposite effect, in that the wealthy pay a higher proportion of the taxes. According to the economist, no more than 50% of the government’s income should come from indirect taxes.