SANTO DOMINGO.- Fears about a tax reform that would further squeeze the pockets of Dominicans were dispelled tonight with the announcement by President Luis Abinader that he will not submit any tax reform.
“We are not going to raise taxes. And today I want to announce that we will not submit any tax reforms. Now our only priority is to consolidate the economic recovery,” the president said in a 12-minute address broadcast on radio, television, and digital platforms.
The president explained that the decision was made taking into account that the country's economy is recovering, as the Central Bank has indicated, and also arguing that "this is not the time to ask Dominicans for more sacrifices.".
He asked the population to join him in the only reform he will undertake now, which will be "to continue betting on growth and investment so that the benefits reach all Dominicans."
Figures
He said that between January and September 2021, expenses have decreased by 255% compared to the same period of the previous year, in all items that do not directly affect the well-being of Dominicans, resulting in savings of more than 27 billion pesos.
He mentioned that one of the most significant items is the 70% reduction in advertising and propaganda spending, which dropped from more than 5.49 billion pesos during the previous period to 1.612 billion in this one.
He said that between January and September 2020, 4.437 billion pesos were spent, while in the same period under this administration, only 161 million pesos were spent. A reduction of 2,648%.
“Spending on food and beverages has been reduced by 143%. Within the country, the reduction in allowances reached 2,136% compared to 2020, and in travel expenses for people with diplomatic and consular work, the decrease reaches 87%,” he explained.
Regarding the purchase of furniture and equipment for government offices, the execution in 2021 was 479% less compared to 2020, and in perishable materials, the reductions exceed 1,500%.
“In addition to this, we have reduced structures, eliminated entities, and merged others. Examples of this include the Office of the First Lady, Procomunidad, the Office of Supervising Engineers of State Works (OISOE), the State Sugar Council, the Dominican Corporation of State Electric Companies (CDEEE), FONPER, and the merger of DIAPE and DICOM, among others. We will continue along these same lines to improve the quality of spending,” the president added.
