The president of the Dominican Association of Home Builders and Promoters (Acoprovi), Jorge Montalvoexpressed that he supports the regulations to the digital platformsbut understands that at the moment it is not opportune, since the sector is in a fragile situation in the face of the current international situation.
After more than two years of a titanic battle for the construction sectordue to increases in construction materials due to the effects of the pandemic and the international shortage crisis as a consequence of the war between Russia and Ukrainethe sector is experiencing multiple challenges, he said.
He said that this reality drastically affects real estate, economic inflation, and the increase in the cost of a square meter of construction by more than 38%, according to figures from the National Statistics Office (ONE) in its latest June report on the Housing Cost Index (ICDV).
He said that given this scenario, Acoprovi considers it inappropriate to apply such challenging tax measures to digital platforms at this time.
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Acoprovi understands that the implementation of taxes on platforms such as Airbnb endangers the dynamism of the construction sector, adding that it “is already weakened” by the world crisis and inflation.
“As an Association, it proposes the active participation of the housing construction sector, through work groups, in the government dialogue related to the measures to be implemented on digital platforms. This in order to create strategic alliances that help mitigate the negative impacts on the local economy”, said Montalvo, president of the Association.
The issue of charging taxes to digital platforms that are not located in the country but that offer their services nationwide is a provision that has been in the works for several months. An example of these applications are Netflix, Amazon, Airbnb, Expedia, Spotify, Uber, Didiamong other.
