This Monday, October 7, starting at 4:30 in the afternoon, the Government Dominican will present in LA Semanal con la Prensa the proposal of reform most anticipated since President Luis Abinader assumed the head of State: the Fiscal Modernization Law project.
The Executive Branch will announce, for the first time and officially, what the strategies for the application of a reform tax and taxfrom which a goal of collection of up to 110,000 million pesos annually, according to unofficial information obtained by Free Diary.
The Government has maintained meetings with ministers, directors and other officials during last weekend to socialize the details of the project, with the purpose of establishing the narrative that will be presented this Monday.
Recently, the Minister of Finance, Jochi Vicente, assured the businessmen that the reform has “a aggressive plan against evasion fiscal“which seeks to have the participation of all sectors of society, increase social aid and subsidies, achieve equity taxstrengthen the administration tax and recapitalize the Central Bank.
During his swearing-in speech for his second term on August 16, Abinader said that the reform fiscal will be focused on three objectives: “guarantee finance healthy public, reduce debt and secure resources to improve our health services, security as well as the fundamental infrastructure for our development,” declared the president.
Entrepreneurs and hoteliers request review of exemptions
The reform fiscal has generated high expectations and uncertainty among the productive sectors that make up the economy. So much he sector business like him hotelier they hope that the Government make a analysis cost-benefit of exemptions.
“Beyond eliminating exemptions In a generalized way, what we propose is that a cost-effect review of each tax regime. Those that are not effective should be reviewed, but we do not support the idea of a generalized total elimination,” he told Free Diary the vice president of the National Council of Private Enterprise (Conep), César Dargam.
The president of the Hotel and Tourism Association of the Dominican Republic, David Llibre, agrees with this, and recalled that, in the case of sector hotelierthis has the capacity to return in income up to 12 times the fiscal sacrifice that the state incurs with the exemptionsfor which he hopes that these will be maintained.
The platforms of accommodation short rent They are willing to contribute 18% of the Tax on the Transfer of Industrialized Goods and Services (Itbis) on their direct services, as long as they do not become withholding agents for the owners, said Airbnb executive Carlos Muñoz.
Zones frankindustries and cinema join them
Knowing that the reform fiscal could bring changes in the regimes tributaries current incentives, other sectors have also spoken out in favor of maintaining the current incentives they have. This has been the case of the zones frankindustries and cinema.
The director of the Dominican Association of Free Zones (Adozona), Luis José Bonilla, recognized that this sector is one of the most benefited in fiscal matters, but he reminded Free Diary which has also become one of the pillars in the economy, growing 14% last August.
Meanwhile, the industrial wait that modifications are presented that do not affect them.
“What we desire in a reform It is that the engines of the industry do not turn off. May the industry continue working, creating jobs and being competitive, said the head of the Association of Industries of the Dominican Republic (AIRD), Julio Brache, last May.
He indicated that the Proindustria Law 392-07 It is an important basis for Dominican industries to continue adapting their machinery and production capacity to compete with international markets.
He rum segment declared last June that their sales have fallen 9.56% since the last reform taxapplied in 2012, due to the high burden tax on products, with up to 70% taxes on low-priced rums.
Meanwhile, industry professionals cinematographic They claim that Film Law 108-10 has contributed to the attraction of investment abroad, to job creation and a domino effect in multiple sectors.
The mining company GoldQuest, concessionaire of the Romero mining project, located in the province of San Juan, presented a socioeconomic study at the beginning of September in which it indicates that, if the viability of exploiting the gold and copper deposits in this area is demonstrated, Contributions to the treasury of up to 46,070.4 million pesos could be generated in the first eight years of mine operations.
