SANTO DOMINGO.- The Dominican Republic's Multiple Banking Association (ABA) reported that it is in the process of evaluating the impact that the proposed tax modernization law, submitted by the Executive Branch to the National Congress, will have on banking operations, and stated that its position will be to defend savers and promote financial inclusion.
The ABA stated that it will present the conclusions and technical arguments prepared by legal, financial and tax experts from the banking sector in the public hearings announced by the legislative chambers "to carefully and cautiously consider a piece of such magnitude as the aforementioned proposal.".
In that order, the banking association's aspiration is "that a successful comprehensive tax reform can be achieved for the benefit of the best interests of the country.".
He explained that the association is evaluating aspects contained in the bill related to the tax on savings and digital payments, the tax treatment of autonomous assets that invalidate figures such as Investment Fund Administrators, the impact on the figure of trusts, the Value Added Tax and the transfers of real estate and others that will impact financial users.
“In an environment of widespread consensus on the need to promote a comprehensive tax reform, expectations were geared towards proposals that would simplify the tax structure, facilitating agile and efficient compliance in favor of formalization and the reduction of evasion, and promoting the optimization and quality of public spending and competitiveness,” the ABA stated regarding the environment prior to the submission of the legislative piece.
On the other hand, he explained that a legal and financial solution was expected that would underpin a profile of sustainable public finances in the long term and an environment conducive to encouraging national and foreign investment that would guarantee the goal of doubling the Gross Domestic Product by 2036.
The ABA reiterated that the financial system is the catalyst that transforms savings into consumption and investment for households and productive sectors. In this regard, it asserted that “if we want greater access to banking and financial inclusion, the discourse should focus on incentivizing a culture of saving and facilitating tax compliance through digital payments.”.
In a press release, the Banking Association indicated that its technical conclusions are being studied within the framework of the position put forward by the National Council of Private Enterprise (CONEP), with the holistic and sectoral vision of its membership.
