Government officers had been pressing for the including of new taxes in the 2022 National Budget or for the government to at least present a bill that would be added as a complementary package in 2022. In a 9-minute address to the nation on 27 October 2021, President Luis Abinader said “no” to the tax reform and said that the revenues need to be found in more efficient spending.
The President acknowledged the rising cost of living that is affecting most in the country. “We also listen to our people and we are aware that today, with an exponential increase in the international prices of oil, basic food products or raw materials for fertilizers, with the impact that this has on domestic economies, this is not the time to ask Dominicans to make more efforts,” said the head of state.
“The only reform that we are going to undertake now is to continue betting on growth and investment, so that the benefits reach all Dominicans,” said the President in his speech.
The President stressed: “It’s not about spending more, it’s about spending better. Only on what is necessary. Only on what improves the quality of life of Dominicans. And that is why every peso of the public budget is now under the President’s magnifying glass,” he declared.
The announcement came shortly after the president of the Chamber of Deputies, Alfredo Pacheco (PRM-National District) had said that the country would have to choose between more taxes or more borrowing. A group of 29 senators prepared a draft of a bill that would cut all tax exonerations to public and private sector.
In the Abinader administration, Economy Minister Miguel Ceara Hatton has advocated for better spending and lowering taxes to increase government revenues.
Listen to the speech (as of minute 5:45)
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28 October 2021