Tax Reform in DR is Coming Soon

If they track down who are the people in DR who have the codenames used for sending bribes by Oderbrecht there may be some past corruption money coming in:

"Second Lady", "Pervert", "Salary L" and "Chocolate CP", some of the codinomes used by Odebrecht to pay bribes in the DR

https://noticiassin.com/pais/segunda-da … bo-1175042

Among the extensive archive of 334 pages of new information from Odebrecht that covers the years 2004 to 2011, delivered to the Peruvian Prosecutor's Office, there are at least 19 pages containing codinomes, works and illicit payments from the Dominican Republic.

The documents related to our country cover the year 2006, and were obtained exclusively by El Informe with Alicia Ortega and Noticias SIN through Convoca.pe, which leads the Investiga Lava Jato network, of which the journalist Alicia Ortega is a member.

The files contain secret payment orders from the Structured Operations Division of the Brazilian company from January 1 to December 31, 2006, coinciding with the third year of the second presidential term of former President Leonel Fernández and the congressional elections of 16 May of that year.

The sum of clandestine payments related to the Dominican Republic amounts to US $ 9,558,296 in those 12 months.

The most recent information reveals 56 codinomes or code names linked to the irregular operations of the construction company. Of these, 50 are new and are associated with the works of the Pinalito and Palomino hydroelectric plants, the Samaná Aqueduct, the Autopista del Coral and contributions called “campanha” or campaign in Spanish.

The previous governments of Danilo and Leonel would appear to be under the spotlight now with Alicia Ortega on the case too.

A bill has been proposed by Senators to eliminate many tax exemptions and so avoid fiscal reform at this difficult time.

One of the laws they propose repealing is Ley 171-07 which relates to incentives to residency for foreigners through pensions and rentiers.

See below:

These are the laws, and their exemptions, that the senators want to "knock down"

The bill presented by a group of senators seeks to "avoid" a tax reform.

A group of senators presented a bill in which they argue that "no tax reform will be needed."

Named as a "bill that repeals laws and articles on tax exemptions" the senators propose in this piece to eliminate legal provisions by which some sectors do not pay taxes to carry out certain commercial activities.

However, some of the exemptions it intends to eliminate stimulate job creation, the use of renewable energy, foreign investment and even education.

The senators have taken cover claiming that within the repealed laws are also exemptions to the importation of vehicles that all legislators receive, implying that they too would be "affected" by this piece of legislation.

Specifically, these are the laws and articles that would be repealed, if the senators' initiative is approved, along with a brief summary of what each one establishes:

.............
Law number 171-07 on special incentives for pensioners and rentiers from foreign sources: This initiative is intended for people who wish to transfer their residence to the Dominican Republic, to whom it grants the exemption from paying various taxes, total and partial, as for the first home, on mortgages, capital gains, motor vehicle and the possibility of opting for a "residence by investment". One of the conditions it establishes is that that person, pensioner or rentier, has a justified income of more than 1,500 dollars....................

https://www.hacienda.gob.do/wp-content/ … 1-07-1.pdf

If and it is an if, this gets approved it may affect those planning a move here.

The President is due to speak to the nation in an hour on tax reform and he may mention the Senate's proposals.

for sure but and repatriate can still have some benefits in this regard I hope lol,
thanks for the great information
god bless

Isn't the president speaking tonight on this? 

Pretty sure these senators are grandstanding!

Just now:

President Abinader announces that he will not submit a tax reform

It argues that the economy is recovering and that the population cannot be burdened further

https://www.diariolibre.com/actualidad/ … FN29605264

The President of the Republic, Luis Abinader , announced on Wednesday night that his government will not submit a tax reform project .

The president said that his administration made the decision taking into account that the country's economy is recovering , as the Central Bank has indicated, and also arguing that "it is not the time to ask the Dominicans for more efforts."

The president addressed the nation during an address on radio, television and digital media starting at 7:00 pm.

Instead, he said that what his management promotes is the rationalization of spending.

“The agenda of institutional reforms that we have proposed on almost all fronts and a true rationalization of public spending, to make it more efficient and productive, have already begun to reactivate our economy and provide us with sufficient means to balance our accounts without touching our pockets. the citizens, ”said the head of state.

He also indicated that they are aware of the impact that the "exponential increase in international prices of oil, basic food products or raw materials for fertilizers" has on the country's domestic economy. He added that his government knows how to listen to his people and understands that it is time to "be close to the people."

“That is why we are not going to increase taxes and today I want to announce that we will not submit any tax reform. Now our only priority is to consolidate the economic recovery ”, he stressed.

He said that in the situation that the Dominican Republic is, it needs the entire population, "to move this country forward."

"I am willing to work shoulder to shoulder with each Dominican to achieve the objectives that as a country we have set ourselves," he said.

This will be well received here.  Let's see how the international community reacts.

Great news!

Maybe not Rich.  If the international community downgrade our bond rating that is a real issue!  That is an expensive issue.

We have to wait and see what they do here and how it's received out there!

This President listens and acts.

The public spending cuts made since he took power are massive. He outlined them in his address.

There has been so much waste and inefficiency in the use of public money with corruption in the past. Gone are the bottles and now time to get rid of the barrel and the car perks.

The President met with major bankers and World Bank in past few days if I recall.

Not only that he states with public spending savings and predicted growth 'there will be sufficient means to balance our accounts' .

Fingers crossed he is right!  I believe he is going in the right direction!

Great info. Thank you lennoxnev for the ultimate info on this matter.  AND thank you planner for your insightful replies

Elimination of tax exemptions that already exist remain possible:

Senator affirms that even without tax reform, bill that eliminates "exemptions" will continue its course

https://listindiario.com/la-republica/2 … a-su-curso

The senator and proponent of the bill that seeks to repeal several laws and tax exemptions, Alexis Victoria Yeb, affirmed that the initiative will maintain its normal rhythm, despite the announcement by President Luis Abinader, regarding the decision not to present a reform fiscal.

Victoria Yeb assured that the project will be maintained and that now, as it was decided in the last session, it will be studied by the Finance Commission.

“In the same way, we are going to continue with our project. It has already been sent to commission, we are waiting for the president of the finance commission to arrive in the country to put it on the agenda ”, he commented.

Beyond his decision to keep it, Victoria Yeb admitted that each of the points that the project has to study and analyze and that there is the possibility that some exemptions will be eliminated.

"All these points must be analyzed, studied and see the possibility that some exemptions continue and others are eliminated, as well as the exemptions given to legislators, prosecutors, among other officials. Everything will have to be studied, ”said Victoria Yeb.

On the other hand, he reiterated that all sectors must be "affected" in some way and that there is a real need to apply a tax reform.

"All sectors must be affected in some way and here they have been talking about the fiscal pact for several years and it must be done, either next year or when it is prudent, but it must be done," he said.

When questioned about how the budget for next year 2022 will be sustained, the senator of María Trinidad Sánchez said that they will maintain the same formula as the last 10 and 15 years: "through loans or reduction of spending that this government has made" .

I think all the people will be in favor of holding politicians accountable for the misuse of public funds via their programs and exemptions.  All except the politicians of course. 

Planning  for reforms in the future is absolutely needed.   Clearly Abinader said not right now. I do believe he will make it happen in the future

Tax reform has been put on hold for this year due to a difficult domestic situation but much better revenues and growth have made it possible to revise the propsed budeget for 2022 without the anticipated reforms - see artocle below.

This government is cutting waste and ghost employees from the payrolls and there are so many cases of corruption being prosecuted and dishonest public servanst being dismissed that it is hard to keep up with events. The latest arrests and rais on property happened last night involving senior active generals and coronels.

The good news in the revised budget is that the prosecutors office is going to get yet more funding.

And the management of the budget is such that credit rating agencies may look favourably on DR.

Some items of the 2022 budget would be modified

https://www.diariolibre.com/economia/al … PD30006669

The project that modifies laws number 237-20 and number 166-21 of the General State Budget 2021, contemplates a decrease in the items designated to 14 ministries of the country, including Education, with a reduction of RD $ 5,349,999,952, which for economists is valid in this process of economic recovery.

In addition, the economist Henri Hebrard considers that placing the deficit at 3% gives a signal that there will be a new version of the budget for the year 2022.

“This indicates that they are going to move some items from the 2022 budget to be consistent with what they are now modifying. Obviously, this is going to help the country with the evaluation of the rating agencies, they will say; They are not doing the tax reform, but the accounts are very good, they are ending the year much better, ”Hebrard said.

The Executive Power in the project issued last Monday to the National Congress, proposes an increase in fiscal income in the order of RD $ 63,641.8 million compared to what was projected in the Budget Reformulated in July. According to the official document, it is now estimated that tax revenues at the end of 2021 will amount to RD $ 830,007.2 million, equivalent to 15.6% of the projected Gross Domestic Product (GDP).

Likewise, in terms of spending, a net increase of RD $ 13,263 million is proposed, with which expenditures will amount to RD $ 989,853.2 million or 18.6% of the estimated GDP for the year.

“What has been done at this time in relation to a presentation of a new amendment to the Budget is valid. Regarding whether the Education law is being violated, I think not, because the reduction that is made is not too great in relation to the amount of resources that Education manages due to the allocation of 4% ", said the economist Franklin Vázquez to the be consulted by Diario Libre.

He pointed out that, if it is analyzed that there is currently an economic recovery process, the redistribution is valid regardless of the law.

Regarding the deficit, the economist considers that what is established by the Executive Power implies that there is adequate management and that it is wanted, in some way, to gradually balance public finances.

Along with Education, the ministries that will receive a decrease in their budget items are Public Health with RD $ 7,768,972,522; Public Works and Communications: RD $ 7,393,621,048; Tourism: RD $ 2,147,515,396; Environment and Natural Resources: RD $ 1,546,543,454.

Also, the document establishes budgetary reductions to the Defense ministries RD $ 1,124,757,981; Energy and Mines: RD $ 904,846,138; Hacienda RD $ 702,000,000; Ministry of Foreign Relations: RD $ 535,782,866; among others.

The bill that seeks to modify the General Budget of the State 2021, was submitted with less than two months left until the end of the year 2021.

This includes an increase to the Attorney General's Office with an increase of RD $ 1,500 million; the Judicial Power with: RD $ 2,500 million, the Chamber of Accounts: RD $ 200 million, the Ministry of the Interior and Police: RD $ 5,189.2 million, the Central Electoral Board with an increase of RD $ 750 million. In addition, the Ministry of Agriculture, the Constitutional Court and the Electoral Superior, the Ministry of Economy, Planning and Development and the Ministry of Higher Education, Science and Technology.

Excellent news and without tax reform due to good governence!

Fitch Says RD Has Rapid Growth and Upgrades Its Rating

https://almomento.net/fitch-dice-rd-tie … ificacion/

The risk rating agency Fitch Ratings reported today that the outlook for the Dominican Republic improved from negative to stable and affirmed its rating at BB- given faster-than-expected economic growth this year and the reduction of the fiscal deficit.

“The Dominican economy is recovering robustly, growing an estimated 11% in 2021 (surpassing our 4.9% projection in March), and we expect increased investment to drive growth above the potential of 5.7% in 2022 and 5.3%. % in 2023 ”, said the reputed international rating firm in a publication that circulated this Wednesday.

RAPID DECREASE OF DEFICIT

Fitch Ratings stated that the economic recovery and the fiscal policy initiatives stimulated a more rapid decrease than the estimated general government deficit and the estimated net debt, which for this year they calculated at 3.0% of gross domestic product (GDP) and 2.4%. % of GDP, respectively. In addition, the agency highlighted that the strong economic recovery has boosted tax revenues exceeding budgetary expectations.

It also estimated that the debt / GDP ratio will drop to 51% in 2021 and stabilize at 49% over the next two years, well below the peak of 58.2% of GDP recorded during the pandemic and the average of 57% for countries. “BB” rating pairs.

The firm outlined that one of the credit strengths that the Dominican Republic has is the uniformity in the external debt repayment schedule, which is supported by "active debt management and a well-cultivated international investor base."

Fitch Ratings pointed out that private investment is growing in the hotel sector, in manufacturing free zones, infrastructure and housing, while highlighting that tourism and industrial activities have shown a strong recovery.

The agency also highlighted the vaccination rate against COVID-19 that reaches more than half of the population and the lifting of sanitary restrictions. Faced with this scenario, he observed that the level of consumption remains firm, "sustained by strong remittances from the United States and the recovery of the labor market."

“The Dominican Republic has a mean World Governance Indicator (WGI) ranking at the 45.2th percentile that reflects a recent history of peaceful political transitions, a moderate level of rights to participate in the political process, an institutional capacity moderate, an established rule of law and a moderate level of corruption, ”the report emphasized.

Analysts highlighted the political stability, continuity of macroeconomic policy and a punctual and timely response to the pandemic during 2020. They also highlighted the possibility that the WGI will be reinforced by the advances of the Luis Abinader government in promises of institutional reform , including the strengthening of judicial independence, fiscal independence and the reduction of financial losses of the electricity utilities promised under the Electricity Pact.

ALSO THE STANDARD & POOR´S

On December 3, the rating agency Standard & Poor's also improved the credit outlook from negative to stable and affirmed the Dominican Republic's rating at BB- / B, after estimating favorable economic growth for the country, as well as the continuity of policies. public for the next 12 to 18 months.

This is good.