Abinader enacts solid waste reform with higher business contributions

Santo Domingo.- President Luis Abinader has enacted Law 36-26, a reform of the Dominican Republic’s Solid Waste Management and Co-processing Law, introducing new financing mechanisms for the national waste management system, expanding recycling incentives, and tightening restrictions on single-use plastics.

The law, approved by Congress and officially promulgated on July 6, replaces portions of Law 225-20 and introduces a new 12-tier contribution system requiring companies with higher annual revenues to make larger payments to the DO Sostenible public trust. The maximum contribution rises from RD$675,000 to RD$2.2 million for businesses with annual revenues exceeding RD$2.5 billion.

The legislation also restores the tax deductibility of these contributions for Income Tax purposes, reversing a provision removed under the previous reform approved in late 2025. Businesses will now pay the contribution in two installments—half with their income tax filing and the remainder six months later.

To further strengthen the system, the government will match the amount collected by the General Directorate of Internal Revenue (DGII) through allocations from the national budget.

The reform also updates waste management rules by allowing waste generators to separate recyclable organic and inorganic materials more flexibly while reinforcing the country’s transition to a circular economy. In addition, it bans the importation of expanded polystyrene (foam) products, including straws, cups, cutlery, and other single-use items that lack biodegradability certification.

The legislation was enacted despite opposition from major business organizations, including CONEP, ONEC, and AIRD, which argued that the reform was rushed through Congress without sufficient consultation and warned that the increased financial burden could affect investment and business planning.