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BiggerUnanimous criticism of Tax Reform emerges during Chamber of Deputies public hearings
Santo Domingo.- Yesterday, hundreds protested the “Fiscal Transformation” bill being reviewed by the Chamber of Deputies, voicing strong opposition during public hearings. Community members and business representatives argued that the proposed reforms would undermine the country’s economic stability across various sectors. Demonstrators outside the National Congress called for the bill’s complete withdrawal.
Various organizations, including the National Council of Private Enterprise (Conep) and the Association of Industries of the Dominican Republic (AIRD), emphasized the importance of preserving existing tax exemptions. They proposed alternatives such as increasing the minimum wage, reducing the public payroll, and exempting basic food products from taxes.
Concerns were raised about potential negative impacts on the banking sector and housing commercialization. Representatives from the construction sector warned that tax changes could limit access to affordable housing. The film industry also defended its tax incentives, highlighting its contributions to employment and local economies. Former presidential candidate Carlos Peña criticized the proposal as unconstitutional, calling for its retraction while other political leaders echoed similar sentiments about its fairness and economic impact.
Any mention of tax reform, meaning tax increases, in any country is met with its public’s unwillingness to accept the idea. It is a normal reaction. Yet, it seems this new tax reform in the RD is being rejected by all sectors. It is a large sign the law makers should erase this reform and go back to the drawing board to create an acceptable reform.
Before even entertaining the idea of raising taxes, why not try to solve the massive tax evasion issue first? Also, formulate a plan to reduce public spending and do something about the large informal labor sector.