The Ministry of Finance and Economy (MHE) welcomed today the approval in the National Congress of the Bill on Economic Pro-Growth Measures, Fiscal Simplification, and Mitigation of the International Crisis, which seeks to maintain stability and protect the vulnerable and middle sectors of the population.
The institution considered the approval of the initiative as an important step forward, which creates fiscal space for the State to respond to the current context of crisis resulting from the conflicts in the Middle East.
For approval, the bicameral commission formed to study the project issued a favorable report after weighing each of the proposals. The process was finalized after hearing from Minister Magín Díaz and executives from the Association of Industries of the Dominican Republic, who were summoned in separate previous sessions to address the legislators’ concerns.
The initiative now moves to the Executive Branch for its enactment or observation in accordance with the procedures established in the Constitution of the Republic.
In offering its assessment of the approval, the institution acknowledged the leadership and responsibility assumed by the legislators, especially by the presidents of both chambers, Ricardo de los Santos and Alfredo Pacheco, following the submission of the proposal made last Friday the 12th by the President of the Republic, Luis Abinader. Likewise, it expressed gratitude for the proposals made by the different legislative caucuses within the National Congress.
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The project designed by the MHE does not modify the Tax on the Transfer of Industrialized Goods and Services (ITBIS) -neither its rate nor its base-, does not alter most of the selective taxes currently in force on fuels, alcohol, cigarettes, and telecommunications, and excludes micro, small, and medium-sized enterprises from new tax burdens. On the contrary, it eliminates the payment of advances for micro-enterprises and redefines the one that small businesses must pay, among other benefits.
In addition, it increases the threshold for income tax-exempt salaries paid by wage earners by 15%, moving from RD$34,685 to RD$39,900, as well as an increase in the deduction for educational expenses and eliminates anachronistic taxes.
