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BiggerHigh taxes brake the push toward formality
Santo Domingo.- Dominican Confederation Micro, Small and Medium Enterprises (Codopyme) president Luis Miura, said the two main causes of informality in the Dominican Republic are the high fiscal and labor cost that companies have in the country.
“If we as a country really want to work on eliminating informality, the first thing we have to do is work on the pending reforms,” said the representative of the MSMEs.
Miura spoke about the report of the International Labor Organization (ILO), which explains that the partial recovery of employment has been led by the growth of informal employment since June 2020 in Latin America and the Caribbean..
There is no definition in this article as to how high taxes are braking the push to formality. If “fiscal” is defined as taxes it would make a some sense. Fiscal is a general term that could outline all financial costs of a enterprise to include labor, operations, administration, supplies, overhead, and of course taxes. Separating taxes from the costs of the rest as a cause of the braking is wanting of explanation.
One can expect the future is holding a bag government strategies to generate more tax and fee monies.