Local May 26, 2024 | 2:16 pm

Proposes ITBIS reduction to 10%, ISR 18% and elimination of other taxes

Santo Domingo – The Regional Center for Sustainable Economic Strategies (CREES) executive vice president assured that with the proposed tax reform proposal, the government could increase its collections by 1.5% of the Gross Domestic Product in the first year of application.

Miguel Collado Di Franco explained that lowering taxes collects more from the first moment and recalled the success of the 1992 tax reform proposal. Despite initial concerns about falling collections, the reform led to a significant reduction in the Income Tax rate from 46% to 25 % within three years, and collections doubled in the third month of implementation.

Callado Di Franco said that the current environment is different, with a different and more capable tax administration.

Interviewed by Héctor Herrera Cabral in the D’AGENDA program, which is broadcast every Sunday on Telesistema channel 11 and TV Quisqueya for the United States, the economics professional insisted that the proposal formulated by CREES, contrary to what happened with reform 253-2012, which is the most recent one, guarantees the government, in the first year, an increase of up to 1.5% of GDP, being conservative.

He added that the tax reform, which President Luis Abinader has already begun to socialize with different sectors of national life, must be discussed and approved so that it comes into effect with the 2025 Budget.

Our economics professional reiterated the potential impact of The proposed tax reform, contrasting it with the previous reform 253-12. This new proposal has the potential to increase the Tax Pressure between 1.3 to 1.5% in the first year, a conservative estimate that could be achieved without waiting for 2025. The expansion of the bases would facilitate this increase, emphasizing the need for immediate action.

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Paul Tierney
May 27, 2024 8:22 am

A reduction and elimination of taxes is a sign of new and higher taxes on the way. One cannot expect the new generous funding increase to the political parties be done without more tax revenue in the treasury.