The Dominican Association of Free Zones (Adozona) expressed its concern on the conclusion that free zone jobs have been created at “an enormous fiscal cost” made in a recent World Bank study (“Hacia un sistema tributario mas eficiente”) on achieving efficiencies in the Dominican tax system.
The tax efficiency study criticized the tax incentives granted to free zones had grown 1029% from 2011 to 2018, but Adozona says this conclusion contradicts another 2017 World Bank study on Free Zones in the Dominican Republic: Policy Considerations for a More Competitive and Inclusive Sector,” that called free zone industries in the DR a success story. That free zone industry study stated that “the elimination of the export quota requirement for the companies that operate in the free zones, together with the continuation of the fiscal incentives, have converted the free zones of the Dominican Republic into a more attractive location for operations.”
Furthermore the Association makes note of the fact that they have created 50,529 new jobs between 2009 and 2016 and currently employ about 163,000 persons that is equal to one of every eight formal jobs created in the Dominican Republic during the same period.
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World Bank study
Diario Libre
7 Dias
8 February 2018
