SANTO DOMINGO - Fermin Acosta, former president of the Dominican Association of Housing Builders and Developers (Acoprovi), questioned yesterday why the Fiscal Modernization Law, presented to the country this week by the government, did not take into account reducing or freezing the disbursement of funds to political parties.
The business leader said that at a time when sacrifices are being considered for all sectors of Dominican society, with the purpose of improving the economy, no thought has been given to the resources allocated to partisan campaigns.
“At a time when sacrifices are being considered for all sectors, with the aim of improving the country's long-term economy, has no thought been given to reducing or freezing the funds allocated to political parties?” Acosta asked.
Another point highlighted by Fermín Acosta is that the proposal put forward by the government, which is currently being processed in the Chamber of Deputies, eliminates incentives for some sectors, but does not mention the measures that will be taken to reduce tax evasion.
“The measures mentioned eliminate incentives, but I don’t see anything that mentions the measures that will be taken to reduce tax evasion,” pointed out the president of Crisfer Inmobiliaria, a firm dedicated for more than 20 years to real estate development and marketing in the local market.
The third point highlighted by the Acoprovi leader refers to his recommendation for a review and streamlining of the country's spending. "A review of the country's spending should also be conducted to improve its efficiency," he added.
Fermín Acosta. (External source).
He said that the Dominican State “will continue fishing in the Aquarium.”.
Measures that will have an impact
The Fiscal Modernization Bill establishes that properties that will not pay taxes from the date of its entry into force are those whose amount does not exceed RD$5,025,380.75, which is the current value for a low-cost home, a proposal that has been rejected by a large sector of the population.
The former president of the Dominican College of Engineers, Architects and Surveyors (Codia), Teodoro Tejada, said that this measure represents a hard blow for the Dominican middle class and for the construction sector, highlighting that since its creation it has been an "abusive tax".
“"A tax is established on the total real estate assets of individuals, which will be determined based on the value established for this purpose by the National Cadastre Directorate," the government proposal states.
Paragraph II states that “the amounts established as the total value of the real estate assets of individuals will be adjusted annually by the inflation published by the Central Bank of the Dominican Republic.
Those who will be taxed
The project states that properties intended for housing belonging to individuals will be taxed, including the combined value of improvements and the land on which they are built, undeveloped urban land, and properties not intended for housing, including those intended for commercial, industrial, and professional activities
“All urban plots in which no formal construction has been legalized by the competent bodies (Ministry of Public Works and Communications, Ministry of Housing, Habitat and Buildings, municipal councils and others contemplated by the laws or resolutions of the government), intended for housing or commercial activities of all kinds and those whose constructions occupy less than 30% of the total area of the plot in question, will be considered as undeveloped urban plots.”.
Tourism incentives
Article 71 repeals several provisions of Law 158-01, of October 9, 2001, which establishes the Law for the Promotion of Tourism Development for the poles of scarce development and new poles in provinces and localities of great potential, and creates the Official Fund for Tourism Promotion, and its modifications.
These include paragraphs II, III and IV of Article 1; Article 2; the single paragraph of Article 3; and Articles 4, 5, 6, 7 and 14.
