Santo Domingo.- Dominican Republic has been positively valued in economic matters by international organizations that, at the same time, warn about the need for tax reform, something that the Government seems to continue to postpone indefinitely.
Entities such as the International Monetary Fund (IMF), the Economic Commission for Latin America (ECLAC) and the United States Department of State coincide, after praising the economic growth of the country in the last two decades, which requires increasing tax collection, improving public investment and reducing the fiscal deficit.
But the issue of fiscal reform is shunned by the current authorities, in the same way that other governments did at the time.
The political cost is high and, for a country that is permanently in the electoral campaign, it is almost unlikely to be concretized unless the main opposition actors are involved.
After a failed attempt of fiscal reform, the Government promised to abandon the issue and, apparently, will fulfill its word.
This is proven by the State Budget bill for next year deposited in the National Congress without taking into account the intention that was only one year ago to apply a tax reform, although the needs remain the same.
Tax system complex
Report 2025 of the US Department of State.
The country has become one of the main direct foreign investment receptors in the Caribbean, promoted by sectors such as tourism, real estate, telecommunications, free zones, mining and energy.
To this is added the advantage of the DR-CAFTA that they say, has strengthened access to markets, competition and the rule of law.
However, the document It warns about persistent problems: corruption perceived nationally and locally, bureaucratic obstacles, delays in payments, weakness in legal certainty and deficiencies in the application of laws.
It also questions non -standardized procedures in customs assessment and import classification.
The report indicates that the country could attract greater investment if it adopted measures to reduce the high corporate tax rates and the complexity of its tax system, something that precisely, at least in theory, was sought with the tax reform project presented last year.
IMF: Fiscal Reform would improve payment capacity
He International Monetary Fund It projects that Dominican GDP will grow by 3 % in 2025, in a context of greater global uncertainty and more restrictive financing conditions.
The agency insists that the country must maintain a prudent fiscal policy, reduce electrical subsidies and strengthen public investment.
In addition, remember that achieving the degree of investment in sovereign bonds is key to reducing interest rates and lowering financing for both the State and the private sector.
The report emphasizes that the public debt, combined with low levels of collection, limits the fiscal space and keeps interest rates high.
Hence the tax reform is essential to improve payment capacity and create long -term sustainability.
ECLAC: OPPORTUNITIES AND RISKS
ECLAC also highlights the Dominican performance in foreign direct investment and projects that the country will maintain a relatively robust expansion, although it warns that the fiscal deficit could be expanded if economic activity slows down.
The organism draws attention to structural limitations, such as institutional weakness and governance, which can stop the country’s ability to transform investment into inclusive development.
In the same way, raises That Dominican Republic will need to increase tax collection, administer debt with prudence and ensure that public investment is executed efficiently and strategically.
Opposition to the idea of a tax reform
In spite of all of the above and even, with the recognition of the different sectors of the country that a tax reform is needed, when trying to apply it or even propose, the issue alters the spirits producing a collective rejection.
Among the opponents in the National Congress, it is usually resorted to questioning the quality of government spending arguing that such a thing is not necessary.
