The business sector is advocating for the government to carry out a complete review of the tax exemption regimes to mitigate the impact that the elimination of incentives could bring to the country’s main productive sectors, drivers of the economy, in the imminent tax reform.
“Beyond eliminating exemptions across the board, what we propose is that a cost-effect review be carried out on each tax regime. Those that are not effective should be reviewed, but we do not support the idea of a generalized total elimination.”Vice President of Conep
After the presentation by the Minister of Finance, José Manuel -Jochi- Vicente, on the government’s proposal for the next tax reform which includes a removal of incentives, the vice president of the National Council of Private Enterprise (Conep), César Dargam, explained to Free Diary that the private sector agrees with a review of the laws, analyzing their impact by sector.
“We have proposed that the comprehensive approachThat is to say, that attention be paid to spending and the holes that exist in the operation of the State such as the electrical sector and many wastes in many areas,” said Dargam.
Cost-effect analysis by regimen
“Beyond eliminating exemptions in a general way, what we propose is that a cost-effect review of each tax regime. “Those that are not effective should be reviewed, but we do not support the idea of a widespread total elimination,” he said.
He added that there are sectors in the country that have depended on these regimes for their sustainabilityand that reality must be considered in the analysis carried out by the authorities.
When asked about the fiscal situation facing the countrystated that he agreed that there is an accumulated deficit that must be addressed. “Definitely, the Minister of Finance has presented a clear scenario about the reality of our country and public finances regarding a structural deficit accumulated in recent years and the urgent need for additional resources, especially to invest in works and capital investment” .
Dargam stated that businessmen are aware of the needs of the country. “We agree that it is necessary to obtain these additional resourcesbut we have proposed that the approach must be comprehensive.
Likewise, he recognized and valued the measures that the government has implemented to address some of these problems, and said that they are waiting to discuss where the resources will come fromas well as the nature of taxes that could be proposed, including the possible elimination of some tax exemptions.
The government proposes to reduce incentives
On Tuesday, the Minister of Finance explained to businessmen the government intention to eliminate some incentives, balance the balance of tax payments, leading consumers, industries, companies and special sectors to collaborate with the more than 110,000 million pesos that the government requires to improve its finances.
Vicente made a detailed presentation at the monthly lunch of the American Chamber of Commerce of the Dominican Republic (Amchamdr) under the topic: “Fiscal Situation of the Dominican Republic”, where he assured businessmen that the reform to increase income has a aggressive plan against tax evasion.
The official indicated that they need to increase capital spending from 2.7% of the gross domestic product (GDP) to 5%, for this he said that he needs resources, so the tax proposal It is planned to analyze the exemptions. “I found exceptions that I didn’t even know existed,” he commented.
