Late in 2020, Administrative Minister of the Presidency Jose Ignacio Paliza announced that the Abinader administration was going to ask for tax reform and that 2021 was going to be used as a time of lobbying and trying to reach agreements on just how to do this. As of the present time, reportedly, the President has received four proposals from four of his highest ranking officials: the governor of the Central Bank, the Minister of Hacienda, the Minister for Economy, and his economic advisor, Pedro Silverio. Since Luis Abinader is also trained in economics, it is expected that he will add his own input into the final proposal.
Tax reform spells more taxes for persons and companies with added costs to the consumer sector.
In the meantime, social media is full of scenarios on the possible reform, but there is nothing certain as yet. The website N Digital published one of the four versions, but this is certainly not the finished proposal, and this one was roundly criticized by Presidency Minister Lisandro Macarrulla.
Before taking office, today Economy Minister Miguel Ceara-Hatton had stated the government was looking at reducing taxes to stimulate the economy. Ceara-Hatton had stated the government would have savings by being more efficient at spending. There are many who advocate that less taxes will serve as an incentive for business and reduce tax evasion, resulting in overall more taxes for the government.
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N Digital
25 October 2021