SANTO DOMINGO. - The Minister of Finance and Economy, Magín Díaz, reiterated the government's willingness to engage in dialogue with various labor and business sectors regarding the proposed salary indexation, but cautioned that any measure must be evaluated within the framework of a comprehensive reform of the tax system, avoiding isolated decisions that could compromise fiscal stability.
During the meeting "La Semanal con la Prensa" at the National Palace, Díaz responded to concerns about the unions' request to update the income tax exemption thresholds, which have been frozen since 2017, and to establish a limit of up to RD$50,000 pesos.
“It’s true that the thresholds haven’t been indexed since 2017, but that was a necessary measure at the time to broaden the tax base. But I think the time has come to sit down, listen, and analyze,” he said.
The Minister emphasized that he has held meetings with unions and professional associations, and that the government is open to dialogue, provided that macroeconomic stability remains the priority. “Taking isolated measures is never advisable. What is non-negotiable for the government is stability and prudence in public finances,” he stated.
Díaz noted that, despite not having implemented a tax reform during the 2020-2025 period, the government has kept the fiscal deficit at 3.0% of GDP and has achieved two improvements in the country's risk rating. “We cannot make decisions that reduce revenue without explaining what compensatory measures would be taken. That is established by the tax reform law approved in 2002,” he pointed out.
The Minister also highlighted the social progress achieved amidst a challenging international context: “It’s said that it harms workers, but the reduction in poverty between 2020 and 2025, following the impact of COVID-19, is almost unprecedented.”
Finally, Díaz insisted that the approach must be comprehensive: “It’s good to look at everything, not just see it as isolated measures. We are open to dialogue.”
