Government expects Tax Reform to take effect in January 2025

Santo Domingo.- The Dominican government anticipates that its Fiscal Modernization Project, presented at the National Palace, will take effect starting January 1, 2025, according to Finance Minister José (Jochi) Vicente. The reform, which has been in development for over five years, aims to increase tax revenues by 1.5% of GDP.

Minister Vicente emphasized that the additional funds will positively impact public services and citizens’ quality of life, using improved garbage collection—key to reducing diseases like dengue—as an example. He noted that higher tax revenues would support better public infrastructure and social services.

The proposal, expected to be submitted to Congress on October 8, not only seeks to boost tax collection but also addresses tax evasion, which Vicente characterized as a crime that hinders the delivery of essential public services. The final implementation timeline will depend on the legislative process.