Minister of Hacienda Donald Guerrero Ortiz said on Wednesday, 15 March 2017, that tax incentives have become the rule rather than the exemption. Industries benefiting from tax incentives have flourished in the country, including the movie industry, tourism industry and free zone industry. Guerrero pointed out that those sectors of the economy that have not benefited from tax breaks, such as local manufacturing, have experienced decline.
Minister of Hacienda Guerrero said that the tax code contains 35 different clauses that allow 140 tax breaks. He said that this plethora of loopholes has created what could be argued as an unfair tax system.
Guerrero noted that both the Tax Agency (DGII) and the Customs Agency (DGA) are working together to establish better internal controls and while improving the efficiency of both agencies. But he reiterated that the preferential tax system has created a system where special tax regimes are the rule, rather than the exception.
Read more in Spanish:
La Informacion
17 March 2017
