The Dominican Republic is buzzing with discussions on institutional reforms, with both the public and private sectors offering their insights and recommendations.
The United Nations has stepped forward to offer guidance. Inka Mattilla, the UN director, recently spoke to Grupo Corripio media, emphasizing the importance of a sustainable development approach that tackles poverty and promotes equitable resource distribution. She specifically advocated for a progressive tax system.
President Luis Abinader’s administration has prioritized institutional reform, according to Homero Figueroa, a presidential spokesperson. Following a recent government council meeting, Figueroa announced plans to seek congressional approval for twelve key reforms over the next four years. The ruling PRM party holds a majority in Congress, giving them the ability to pass these reforms.
Key Areas for Reform
Taxation: Changes to the Fiscal Pact are on the table, with discussions likely to center around a more progressive tax structure. Previous attempts at tax reform have faced public resistance.
Social Security: The current system provides low pensions without health insurance coverage. Several government entities, including the Central Bank, the Superintendence of Banks, Superintendence of Insurance, state university UASD, Banco de Reservas, pay very comfortable pensions, including medical coverage. The government has awarded millions in comfy pensions, many of these are questioned as political patronage.
Political Transparency: The government aims to strengthen the independence of the Attorney General’s Office. Constitutional amendments are also being considered, although President Abinader has reportedly ruled out changes to presidential term limits.
Public Discourse
Business Sector: The National Business Council (Conep) advocates for maintaining certain tax regimes that incentivize foreign investment and economic activity. Other sectors call for tax reductions to stimulate sales and business growth.
Informal Economy: The heavy burden of the current tax system is seen as a factor in the growth of the informal sector. Reform efforts will need to address this issue.
Media: TV host Mariasela Alvarez is hosting a series of evening panels with experts to discuss the proposed reforms. News commentator Sergio Carlo for Anti-Noti on Channel 9 at 10pm recently summed up the feeling this time around government should first consider cutting wasteful spending.
The Dominican Republic faces a complex challenge in balancing the need for revenue with fostering economic growth and social well-being. The coming months will be crucial as the government seeks consensus and navigates the path forward on these critical reforms.
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Z101 Digital
El Dia
Esta Noche con Mariasela – Seguridad Social y Pensiones
Esta Noche con Mariasela – Reforma Fiscal
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10 June 2024