According to a report from the Ministry of the Economy, Planning and Development, around 44% of the Dominican population (total population 9,445,281) is considered to be middle class and the majority of their spending is on transport, followed by food and drink, accommodation, hotels and restaurants, all of which are likely to increase in cost if the tax reform is approved.
The report estimates that the middle class have a family income of around US$130 per head per month, with the better off having US$453 per month and at the other end of the scale US$44 a month.
Transport is set to increase in cost with a tax of 1% of the vehicle’s value per year, which will affect the middle class, as well as tax increases in gasoline and diesel.
Housing tax will also increase for people with houses worth over RD$5 million and the proposed tax of 10% on savings income will also affect them.
Although some basic foodstuffs are proposed for exclusion, several medicines, agricultural produce, and education materials will now be taxed if the bill is passed, and there are increases for telecom services, which are heavily used by the middle class. For example if a cell phone plan costs RD$2,145.80 a month at the moment, it is proposed to increase to RD$2,179.60, as reported in Diario Libre.