Dominican Republic Government Expects Tax Reform To Take Effect In January 2025

• The Dominican government anticipates that its Fiscal Modernization Project, presented at the National Palace, will take effect starting January 1, 2025, according to Finance Minister José (Jochi) Vicente.
• The Minister of Finance announced that the project (which seeks to increase tax revenues by 1.5% of GDP) aims to improve the quality of life for Dominicans through increased tax revenue. He emphasized that if tax revenues are not raised, the government will be unable to fund essential investments needed to meet the growing demands of the population.
• As part of the reform, which has been in development for over five years, the government plans to strengthen social assistance and significantly increase minimum wages in both the public and private sectors. These measures are intended to boost the economy and enhance citizens’ living standards.
• Minister Vicente emphasized that the additional funds will positively impact public services and citizens’ quality of life, using improved garbage collection - key to reducing diseases like dengue - as an example.
• He noted that higher tax revenues would support better public infrastructure and social services. Key infrastructure projects include the metropolitan train linking the capital to Las Américas International Airport, the Santo Domingo Oeste cable car, the San Cristóbal train, and the Santiago monorail. These initiatives are expected to reduce traffic congestion, taking 1.4 million vehicles off the main roads, thus improving mobility, reducing pollution, and enhancing overall quality of life.
• The proposal, expected to be submitted to Congress this week, not only seeks to boost tax collection but also addresses tax evasion, which Vicente characterized as a crime that hinders the delivery of essential public services. The final implementation timeline will; however, depend on the legislative process.

(Source: Dominican Today)