Following the presentation during the Monday, 7 October 2024 La Semanal press conference, Minister of Hacienda Jose Manuel (Jochi Vicente) submitted the comprehensive Tax Modernization Bill with the proposed tax laws amendments to the Chamber of Deputies on 8 October. The bill seeks to raise government revenues to meet current spending, including social programs and public safety, and have revenues to meet interest payments on debt and continue with infrastructure projects.
Hacienda Minister said the main objective is to foster the nation’s overall development. “We need more resources,” Vicente stated. “Every sector must contribute if we want to build the prosperous nation we aspire to be and double the size of our economy by 2036,” he says.
The minister highlighted that the increased revenue will enable the government to allocate more funds to municipalities, enhancing essential services such as waste management and infrastructure development.
“To achieve a cleaner, more organized country with improved healthcare and a reliable public transportation system, we need significant investments. These investments can only be funded through increased tax revenue,” Vicente explained.
The Hacienda Minister clarified that the bill is the result of over five years of work and is not a hastily conceived proposal.
Key features of the bill include:
• Elimination of advance payments for individuals and micro-enterprises.
• Consolidation of the ITBIS tax into a single 18% value-added tax (VAT).
• Exemption of seven basic food items — bread, rice, chicken, eggs, milk, plantains, and yucca from the VAT.
Economist Jaime Aristy Escuder, speaking on the Esta Noche con Mariasela panel, acknowledged once again the middle class is the most impacted. He advocated for public services to improve so that the middle class can benefit from quality free education, health and security services to compensate for the higher taxes.
Anibal de Castro in his editorial in Diario Libre expresses concern the government is doing little to combat tax evasion.
Read more:
Ministry of Hacienda
La Semanal – 7 October 2024
Diario Libre
Diario Libre
Listin Diario
El Dia
Hoy
El Caribe
El Nuevo Diario
9 October 2024