Santo Domingo- The match People’s Force (FP) reported that more than 750 thousand Dominican employees are being punished fiscally with undue taxesas a consequence of the refusal of the Government to apply the indexation of the exempt section of the Income Tax (ISR)established in the article 296 of the Tax Code.
According to the political organization, this omission represents a direct violation of the law and a practice that progressively reduces the real income of formal workers.
The position of the Power of the People was made known during a news conference headed by the Secretariat of Labor and Union Affairsrepresented by its owner Nelsida Marmolejoswho acted as spokesperson and read the official statement.
“Every year, more than 750,000 employees pay more ISR simply because their nominal salaries rise due to inflation, not because their purchasing power has improved.“he warned Nelsida MarmolejosSecretary of Labor and Union Affairs of the Power of the People.
The leader explained that, if the inflation adjustment that requires the tax regulationsthe exempt section today would be around more than RD$50,000 monthlyand not the RD$34,685 that remain frozen since year 2017.
“If the exemption required by law had been applied, it would have prevented employees with average salaries, between RD$40,000 and RD$70,000 pesos per month, from being burdened with an inflation tax that reduces their real income between RD$800 and RD$6,000 per month.“, accurate Marmolejos.
You might also be interested in: They support the JCE president’s position of opposing “radically changing the ID card for another document to vote in the DR”
Likewise, the Power of the People qualified as the official argument is unsustainable that justifies the freezing of the exempt section in the name of fiscal stability. On the contrary, it maintains that the lack of updating distorts the economy and weakens the equity of the tax system.
“The argument that the application of wage indexation does not protect macroeconomic stability is not true. On the contrary, its non-application contributes to distorting it.“, held.
In this context, the organization denounced a growing inequality in the tax structurepointing out that the formal workers are financing, with their taxes, a significant part of social spendingwhile they are denied a right that the law already contemplates.
“It is irrational that, while the Government attempts to justify resources granted to social programs for those who do not pay taxes, it denies employees who do pay the adjustment that the law orders.“, he expressed Marmolejos.
The secretary also warned about the effects of this situation on the legitimacy of the tax system and the encouragement of labor informality.
You might also be interested in: Relatives and the PLD remember Reinaldo Pared Pérez on the fourth anniversary of his death
“A tax system that punishes formality and ignores inflation loses legitimacy and sustainability. Compliance with the Tax Code is not a fiscal luxury, it is a matter of respect for the rule of law and basic justice towards the taxpayers who support the country.”, he concluded.
Finally, the Power of the People requested the National Congress that, in the approval process of the General State Budget for 2026the Immediate application of the legal indexation of the ISR or, failing that, a transitional clause in the tax reform to ensure your automatic reinstatement starting next year.
