The failed tax reform and the annulled Law 1-24 that created the National Intelligence Directorate (DNI), were the two projects that caused the greatest controversy in 2024 in the National Congress. With the increase and the creation of new taxes, the government sought to collect RD$122 billion a year.
The first, named “Tax Modernization Law“, was removed from the National Congress on October 19 by President Luis Abinader after the general rejection of different sectors, which considered it harmful and that it would bring more problems than solutions.
When presenting this initiative the Minister of Finance, José (Jochi) Vicenteon October 6 of this year, explained that its main purpose was to improve the State’s tax revenue to increase public investment in key areas such as transportation, health, security and protection of the most vulnerable population.
The increase in taxes affected the pockets of citizens, merchants, churches, the real estate sector, increases in taxes on alcohol and income, expansion of the tax on the transfer of industrialized goods and services (Itbis), and elimination of tax exemptions and the advance payment for individuals and microenterprises and others.
Law 1-24
While Law 1-24, enacted in January of this year, was declared illegal on the 6th of the current month, by the Constitutional Court through ruling TC/0767/24.
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The Court explained that in the approval of Law 1-24, Congress did not comply with the requirements established for organic laws, which establish that two-thirds of the legislators present in the session are required for its approval.
The legislation allowed authorities to access public and private information without a court order, which was considered a violation of the right to privacy. and due process, principles enshrined in the Dominican Constitution, which led to its nullity.
The law granted the ID excessive power, which included the power to carry out intelligence actions such as forcing journalists to reveal the name of the news source and hand over all required information to the authorities.
The DNI was created as an organization in charge of coordinating intelligence and counterintelligence activities in the Dominican Republic.
