The Ministry of Economy has released its latest “Border Monitor” report for December 2024, revealing a mixed bag of results for tax collection in the border region. The report is evidence of the impact of the multidimensional crisis in Haiti has in the Dominican Republic.
While the border zone saw an increase of 680 new taxpayers in 2023, bringing the total to 8,559, the overall number of taxpayers declined by 0.9% compared to 2022. This represents a mere 2.1% of the national total, underscoring the region’s limited contribution to the country’s tax base.
The monthly report, compiled by the Border Zone Development Policies Agency, indicates that the border area also lags behind in formal employment, with only 1.07% of formal jobs as captured by the Tax Agency (DGII). Three of the five provinces with the fewest salaried workers nationwide—Elías Piña, Independencia, and Pedernales—are provinces on the border with Haiti. Moreover, the number of salaried workers in the region dropped by 13.2% compared to 2022, suggesting a potential contraction in the formal labor market.
The border region also has a disproportionately low number of salaried workers subject to income tax withholding. Over 90% of salaried workers earn less than 35,000 pesos, with the exception of Dajabón (89%) and Montecristi (75%).
The report highlights that the border zone continues to have fewer formal employers than the rest of the country, with four out of the five provinces with the lowest numbers located in the border area.
When analyzing economic activities based on the total number of taxpayers, the border zone exhibits a different composition compared to the national average. Agriculture accounts for 14.3% of economic activities in the border area, significantly higher than the 2.5% national average. Conversely, industrial activities have a smaller presence in the border zone, representing only 6.0% compared to 11.8% nationwide.
Although service activities dominate the national economy, the border zone has a lower participation rate at 79.7% compared to 85.7% for the rest of the country.
The report emphasizes the need for tailored strategies to foster sustainable economic development, promote formalization, and create quality jobs in the border region. It highlights existing public policies, such as the incentives provided by Law 12-21 for the Integral Border Development Special Zone, which aims to attract investment and diversify productive sectors.
Furthermore, the report mentions tourism projects in Pedernales and the renovation of the Manzanillo port in Montecristi, given their potential to generate jobs and stimulate the local economy.
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Ministry of Economy
22 January 2025