Dominican government plans administrative tax actions to increase revenue next year

Santo Domingo.- The Dominican government is preparing a set of administrative tax measures to boost revenue collection starting next year, without submitting new reforms to the National Congress. Finance Minister Magín Díaz explained that the strategy focuses on improving tax equity and ensuring fair competition by making the existing tax system more efficient through mechanisms already available to the Executive Branch.

The measures, led mainly by the General Directorate of Internal Taxes (DGII) and the General Directorate of Customs, include expanding electronic invoicing, strengthening product traceability for alcohol and cigarettes, and reinforcing tax controls linked to new technologies. According to Díaz, these actions help reduce tax evasion and generate greater confidence in the private sector by ensuring all economic actors operate under the same rules.

The minister acknowledged that while administrative measures are essential, they are not sufficient on their own to address structural fiscal deficits. He noted that tax regulations must be constantly updated, as taxpayers quickly adapt to changes. Once administrative management is further strengthened, the government could evaluate adjustments in other areas, including selective taxes that have not been updated in recent years.

On the economic front, Díaz dismissed concerns about a currency crisis, highlighting that international reserves exceed US$14 billion, allowing the Central Bank to manage exchange rate volatility. He also emphasized strong coordination among state institutions on fiscal and monetary decisions, efforts to reactivate key sectors such as construction, and a significant reduction in fuel subsidies, supported by lower international oil prices. Through these actions, the government aims to balance public finances and maintain economic stability without introducing new legal tax reforms for now.