Today: January 25, 2026
January 25, 2026
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The border area maintains a reduced tax base

The border area maintains a reduced tax base

Although in the border zone There is a slight increase in employers and of the total wages paidsalaries are still well below average nationala gap that, together with the drop in wage earners and low formalization, maintains a small tax base concentrated in a few provinces, limiting the generation of tax revenue and widening territorial inequalities compared to the rest of the country.

This conclusion is reached in the latest report Border Monitor which publishes the Treasury and Economy.

This document highlights that, despite the sustained growth of the tax collection level nationalthe border zone recorded a drop of 6.87% in the 2024.

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Level nationalthe collection totaled more than 846,450 million pesos in the 2024which represents a growth of 10.46% compared to 2023. However, in the border provinces Only 3,529.94 million pesos were collected, equivalent to 0.42% of the total national.

According to the document, the decrease is mainly explained by the income reduction in Montecristi and Santiago Rodrígueztwo of the three main economic drivers of the border zonewhere predominates agricultural productionespecially of banana and rice.

Nearly 80% of the region’s tax revenue is generated from these two provinces, that is, eight out of every 10 pesos of the total collected in the region. border zone. Both recorded a joint fall greater than 343.5 million pesos in 2024.

Dajabón remains as the third province with the greatest contribution, with 11.23% of the border collection.

In contrast, the central and southern provinces of the border, Elias Piña, Baoruco and Flints, showed increases in collection, with the exception of Independence. However, these demarcations continue to appear among those of lower collection level national.

The tax expenditure

The report reveals that in 2024 the tax expenditure associated with Law 12-21 on Border Development, which offers a regime of tax exemptions and incentives to companies that establish themselves in the area, was estimated at 2,248.7 million pesos, an amount equivalent to 63.7% of everything collected in the region during that year.

Taxpayers

At the close of 2024the border zone record 7,143 taxpayers assets, which represents a reduction of 17% compared to 2023.

The biggest drops were seen in Independence (21.55%), Flints (22.15%) and Baoruco (20.76 %).

Of the total taxpayers, 19.1% operate under the Simplified Regime of Taxation, which facilitates compliance with the tax obligations of liberal professionals and micro or small businesses.

This regime focuses mainly on Independence (49.49%), Flints (21.70%) and Santiago Rodríguez (14.22%).

As for the big contributorsof the 616 registered level national94.64% are in the National DistrictSanto Domingo, Santiago, La Altagracia and San Cristóbal.

Only four operate in the border zone: three in Montecristilinked to the manufacturing industryand one in Santiago Rodríguezdedicated to the production of beverages.

Likewise, only 1.14% of border taxpayers are covered by special regimes different from the ordinary one, mainly the regime of Border Development.

These are distributed as follows: 81.48% in Border Development7.41% in Industrial Free Zone6.17% as Producer of Exempt Goods, 3.70% under the Exporter regime and 1.23% in Proindustria.

Salaried and employers

In it 2024the number of formal employees decreased so much at the level national as in most of the border provinces. Only Independence (66.67%), Flints (1.42%) and Dajabón (0.62%) registered interannual increases, highlighting Independence with the highest percentage growth in the country.

On the contrary, Elias Piña, Valverde and Baoruco are among the provinces with the greatest reductions in formal employees.

As for the employersthe border zone closed the year with 2,105an increase of 3.95% compared to 2023, equivalent to 1.74% of the total national. Nearly 80% is concentrated in the provinces of the north of the region.

Despite the reduction in employees, the total wages paid increased 1.5%, reaching 6,248.32 million pesos, driven mainly by Montecristi and Dajabón.

However, the average salary in the border zone still almost half the average national.

This increase was mainly due to increases in Montecristi and Dajabónwhich together registered an increase of more than 149.62 million pesos, partially offsetting the decrease in 109.50 million of pesos in Santiago Rodríguez.

  • These three provinces represent approximately nine out of 10 pesos paid in salaries in the border zone.

In that same line, Independence and Flints together experienced an increase of 75.23 million pesos in the wages paidwhile Baoruco and Elias Piña recorded a decrease of 22.94 million pesos.

Graduate in Social Communication, graduated from the Dominican University O&M. He is a journalist passionate about the digital world and has worked in several media outlets in the country.

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