Talk about constitutional reform seems to have been relegated by the discussions now going on regarding fiscal reform in the Dominican Republic. The government wants more money to carry out its projects, privileged businesses don’t want to lose their exemptions, and the middle class hopes the government will downsize so it once again isn’t who pays.
President Luis Abinader has said people should wait for the presentation next week of what the government proposes. What is known is that the Executive Branch is gearing up to implement a significant tax reform aimed at increasing government revenue by 1.5% to 1.7% of the Gross Domestic Product (GDP) or around RD$110 billion.
Diario Libre sources say the government plans to achieve this by simplifying the tax system, broadening the tax base, and reducing the informal economy. With increased government revenue, authorities will be able to allocate more funds towards capital expenditures such as infrastructure and public services, as well as reduce the fiscal deficit. This comprehensive reform is expected to impact the government, the productive sector, and households alike. It will encompass measures to manage public spending, taxes, and tax collection.
Meanwhile, the National Business Council (Conep) is confident the pro-business Abinader administration will not be hard on the sector. Celso Juan Marrinzini, president of Conep says fiscal reform more than a challenge can be an opportunity for increased prosperity. Noticias SIN reports that Celso Juan Marranzini of Conep has said: “The fiscal reform can push the country forward if it is handled well.”
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Noticias SIN
Diario Libre
Diario Libre
11 September 2024