In the midst of the discussions over the controversial reform fiscal proposed by the Government, a commission of deputies heard this Tuesday from the leaders of the sectors business, industrial and hoteliers from the Dominican Republic, who asked the legislators review the proposal that would eliminate their exemptions starting in 2025.
According to the businessmen and industrialif the committee of deputies decides to eliminate the tax incentivesas proposed by President Luis Abinader, must do so in a manner gradual, to guarantee international competitiveness and stability of jobs.
The president of the Association of Industrialists of the Dominican Republic (AIRD), Julio Brache, explained that the proposal of reform fiscalif applied, would come into force at the beginning of 2025, precisely when the DR-Cafta agreement with the country concludes, which would affect the national productive sector.
Brache maintained that industrial they need the tax incentives for compete with larger industries, such as the United States, and to make a renewal in their productive apparatus that allows them to generate jobs and contribute to the Gross Domestic Product (GDP).
“We understand that gradualness is what is appropriate, both to increase or impose new taxes and to dismantle the tax incentives to the sectors“he suggested.
“Take care of the tourism“
The Finance Committee of the Chamber of Deputies also met with representatives of the Hotel Association and Tourism of the Dominican Republic (Asonahores), who also rejected the dismantling of the incentives, alleging that the investments ongoing must be taken care of.
David Llibre, the president of the association, explained that the hotel and tourism sector contributes around 30% of the foreign currency in the country, so they need to have a mechanism that protects their investments.
In that sense, he explained that in the Dominican Republic there are investments ongoing and land purchased to develop large tourism projects that, as he argued, could be affected if the reform fiscal comes into effect as it was proposal by the Executive Branch.
“We believe that we can continue contributing more with the exemptions than by removing them, because we return to the State up to 12 times more of our tax expenses,” Llibre said.
Conep worried about the jobs
Another sector that went to Congress to discuss the reform fiscal It was the National Council of Private Enterprise (Conep), represented by its president, Celso Juan Marranzini. The businessmen who came argued that the proposal fiscal contains measures that would affect competitiveness in the country.
Marranzini pointed out that the project reform fiscal must take into account the capacity of companies to generate jobs and the guarantee of investments in the country.
For this reason, the businessman supported the opening to dialogue led by Congress and the Government so that the reform fiscal is not approved and promulgated as it was sent to the legislators.
Everyone supports the reform
Although they reject the total dismantling of their exemptions tributarythe sectors businesstourist and industrial They told the congressmen that they agree with the proposal of the reform fiscalalthough not in how it was originally presented.
In that order, the industrial and the hoteliers proposed that the incentives be eliminated gradual and not abruptly, in January 2025.
The dialogue will continue
The Finance Committee of the Chamber of Deputies will continue meeting with different sectors economical to analyze the impact of the reform fiscal and from now on, the leadership of the Lower House has said that it is willing to modify some points of the reform fiscal.
Francisco Javier Paulino, of the Modern Revolutionary Party (PRM) chairs the commission, which is made up of Kinsberly Taveras, Abelardo Rutinel, Carmen Barcelo, Dorina Rodríguez, Dellys Feliz, Feliz Hiciano, Gregorio Domínguez, Jorge Frías and Sergio Moya, also from the PRM, along with Ydenia Tiburcio and Danilo Díaz from the Dominican Liberation Party (PLD), and the representatives of the Power of the People (FP), Enriqueta Roja, Félix Michel and Rafael Castillo.
