​A timid and general sketch of the content of the tax reform proposal

DOMINICAN REPUBLIC - In Brief 21 Sep 2021 by Magdalena Lizardo

---

The Dominican government delivered at the last meeting of the Economic and Social Council on September 15, the document Dialogue of Reforms 2021: Introductory Document for Discussion, in which it roughly outlines the content of the 12 proposed reforms for discussion with the representatives of political parties and Dominican civil society. The content of the document was disclosed in the following days The elements proposed in the fiscal part are very brief and of a high degree of generality. It is really an unknown what is the government's strategy for the presentation of the Budget Project for 2022, which in principle must incorporate elements of the expected fiscal reform. The 6 points proposed are the following: 1. People with higher incomes must make larger contributions. The collections coming from the patrimony of the people should be increased. 2. Tax simplification and elimination of figures and procedures that make the payment of tax obligations complicated. Facilitation for micro and small businesses. 3. Review of all tax exemptions. Only those that have a tangible impact on employment, generation of dividends and significant impact on the most vulnerable population will remain. 4. Protection of the most vulnerable population (the two lowest income quintiles) from the taxes that fall on them as a result of this pact. 5. Associate tax collections with identifiable projects and expenditures. 6. Establishment of a Fiscal Responsibility Law that guarantees fiscal sustainability and prevents having to carry out new tax reforms in the future. A Central Bank Recapitalization Law that will definitively deal with the fiscal debt.