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Santo Domingo.- Legislators and officials of the Luis Abinader administration have firmly rejected a bill proposed by Deputy Rogelio Alfonso Genao Lanza, which seeks to modify tax exemptions and incentives for the tourism sector and other industries.
Tourism Minister David Collado assured that the government has already guaranteed the private sector and Asonahores that the tourism incentive law will remain unchanged. He also noted that the bill lacks government support, making its approval unlikely. Similarly, Minister of the Presidency José Ignacio Paliza reaffirmed that discussions on tax reform ended when the government withdrew its modernization proposal from Congress last year, stating, “There is not and will not be a new initiative of that type in this government.”
Congressional leaders also voiced opposition. Chamber of Deputies President Alfredo Pacheco argued that revisiting this issue now would negatively impact key sectors, while Senate President Ricardo de los Santos stated that any such reform should apply broadly across all industries.
The rest of the commercial enterprises in the RD should have the same or similar incentives as the tourism sector.
It makes zero sense for that to happen. If anything, the government needs to increase its tax base, not reduce it by giving incentives to other industries and sectors that may not necessarily need it.
Why is it the foreign owned resorts, mostly Spanish, have tax waivers on goods brought into the RD from their countries? They should have waivers on taxes for goods and services sourced in the RD. It would filter a good portion of their revenues into the Dominican economy, creating more employment opportunities and service industries, thus enlarging the tax base the government can draw from.