Various sectors are waiting for the presentation of the project tax reform that has been announcing the Governmentwith which they seek to increase tax revenues to improve finance public. This project includes a tax equalization plan based on the evaluation of incentives, the fight against evasion and ensuring that all sectors comply with their fiscal responsibility.
The topic is one of the most addressed in the country due to its implications in different economic areas, such as private companies and the consumerswho will have to contribute their share in this crucial process, which seeks to increase investments in works, infrastructure and services.
According to the explanations of the finance ministerJosé Manuel Vicente (Jochi), proposes a reform that would add 110,418 million pesos annually to the finance public. The funds would be allocated to areas such as citizen security (13,043 million), primary health care (10,870 million), transport (35,272 million), local governments (11,000 million), recapitalization of the Central Bank (22,233 million) and the electricity sector (18,000 million).
Vicente clarified to the businessmen in a recent meeting that the changes will not be made “all at once”, but rather gradually until the financeso he advocated for understanding and collaboration at the national level.
He recalled that the public sector has put on the table, first of all, the law of fiscal responsibilitywhich puts limits on the growth of public spending. He also mentioned the state reformwhich includes the merger of three ministries, four institutions and the elimination of another ten for greater efficiency. In addition, he highlighted that measures to contain public spending have been presented.
Position of the sectors
Despite not having been previously consulted, some business leaders They were willing to collaborate with the intention of the Government to improve their finance. However, they noted the need to know the project in detail in order to share their observations.
While they wait for the publication of the document, they have expressed their concern about the review and dismantling of the tax exemptionswhich they consider necessary for various sectors that, by their nature, depend on them to be competitive at an international level.
The vice president of National Council of the Private Company (Conep), César Dargam, shared his considerations on the reform, highlighting the importance of the approach being comprehensive, that is, paying attention to spending and the “holes” in the operation of the State, such as the electricity sector and others. waste in various areas.
“Beyond eliminating exemptions across the board, what we propose is that a cost-benefit review be carried out on each tax regime. Those that are not effective should be reviewed, but we do not support the idea of a general elimination,” he indicated.
The president of the Hotel Association and Tourism from the Dominican Republic (Asonahores), David Llibre presented his perspective on the implications that a possible elimination of incentives could bring to the industry. If you remove the tax exemptions to tourism, foreign direct investment in the sector could fall by up to 50%. “This would mean $7 billion less in foreign exchange earnings from tourism,” he said.
While the director of the Dominican Association of Free Zones (Adozona), Luis José Bonilla, stated that, although the sector is one of the beneficiaries in fiscal matters, it is also one of the pillars of the economy, with a growth of 14% in August, which reflects the importance of the line in economic growth.
The Minister of Finance assured that people with fewer resources will be protected in the tax process, through the expansion of social programs, as will MSMEs, which will receive specialized treatment in the payment of advances.
