Frente Amplio calls for enforcement of law requiring annual inflation adjustment

Santo Domingo.- The Frente Amplio (FA) has called on President Luis Abinader’s administration to comply with Article 327 of the Tax Code (Law 11-92) and Regulation No. 139-98, which mandate an annual inflation adjustment to preserve the real value of income and prevent unfair tax burdens on salaried workers. The organization noted that the last adjustment was applied in 2017, leaving the income tax (ISR) brackets frozen despite the continued rise in the cost of living.

According to the FA, accumulated inflation has surpassed 45% since 2017, while wages and the income tax exemption threshold remain stagnant. This situation, they argued, forces thousands of employees to pay taxes on incomes that barely cover basic needs. The group criticized the government for acknowledging the fairness of indexation—something both President Abinader and Finance Minister Magín Díaz have done—yet continuing to suspend it annually through budget laws.

FA leader Cabral emphasized that obeying the law is not optional and urged the government to prioritize social justice in fiscal decisions. He denounced the persistence of large tax exemptions for corporate sectors while workers earning modest salaries are increasingly burdened. The Frente Amplio concluded by demanding the immediate reinstatement of the inflation adjustment mechanism and the implementation of measures to protect the purchasing power of Dominican families, ensuring that economic growth benefits the population as a whole.