SANTO DOMINGO, Oct. 19 (.) – Dominican Republic President Luis Abinader announced this Saturday that the bicameral National Congress would “immediately” withdraw from a controversial tax reform project aimed at raising money to reduce public debt. announced that they would be withdrawing. , combating tax evasion and avoidance, eliminating exemptions and increasing the public sector minimum wage.
Abinader, who took office for his second and final term in government last August, justified the proposals he sent to lawmakers last week in a speech to the nation, saying he was “convinced of the need for structural changes to reduce our dependence on debt. “There is,” he said. and increase our ability to fund solutions to safety, drinking water, power, health, and transportation challenges and eliminate distortions and privileges.
However, after listening to “concerns, reservations and concerns” from a range of sectors and realizing that the proposed Fiscal Modernization Act “does not have the necessary consensus for approval”, he said the government would “We demand the immediate withdrawal of the project.” He explained the agenda of the National Assembly.
This includes “adjusting the scope of our proposed development plans and building acceptable alternatives to achieve the Dominican Republic we want,” the president said.
The Dominican Republic has had an average annual growth rate of around 5% for decades and is expected to lead the region’s growth at 5.2% in 2024, according to the Economic Commission for Latin America and the Caribbean (ECLAC). I am. Abinader’s campaign pledges for the 2020 election have been in the air for years.
Indeed, just two months after first coming to power, and in the midst of the coronavirus pandemic, Abinader presented a plan with new taxes to deal with the crisis, but it was criticized and ultimately rejected. It was withdrawn.
Private sector representatives understand that reforms are necessary but not a condition proposed by the government, but international organizations, including the International Monetary Fund (IMF), agree that reforms cannot be postponed and will help the Dominican Republic bid. claims. Further investment.
Current initiatives include adjusting incentives for sectors such as tourism, cinema, industry, textile chains, and sponsorship law trusts, which are the country’s biggest sources of foreign exchange, as well as collecting taxes on people earning more than 20 million yen. Contains enhancements. 2.4 million pesos (approximately $40,000) per year.
Similarly, it will double the annual payment for the right to put a vehicle into circulation, eliminate the 15% upfront fee paid by micro and small businesses, and increase the payment of this tax to 40% for medium-sized businesses and 60% for large businesses. I pulled it up.
In a speech this Saturday, Abinader said that solving the country’s problems “will not be easy” if “we continue to have one of the lowest tax collections and one of the lowest public expenditures in Latin America.” ” he said. At the same time, he assured that he had fulfilled his “responsibility” by presenting “for the first time in our country’s history” a proposal to set “medium-term debt targets and caps on government spending.”