He believes that this withdrawal will not be enough to guide development plans, since, if spending continues to increase, the government will have to continue resorting to external borrowing to finance itself.
SANTO DOMINGO.- Alexis Colón, managing partner of the firm Colón & Partners and specialist in international commercial law, considered the withdrawal of the Fiscal Modernization Bill announced by the president last Saturday to be a positive step, because in his opinion the proposal was a "setback" that, if implemented, could have seriously affected the national economy and job creation.
The expert suggested a review and update of the real estate system, which would allow for the reassessment of property values to reflect the current market reality, along with provisions that exempt people over 65 years of age or those in retirement from paying the Real Estate Property Tax (IPI).
Colón argued that the project withdrawn by the president, instead of modernizing the tax system, focused on increasing revenue at the expense of the middle and working classes, since the increase in the IPI would have made it more difficult to access housing, while the elimination of tax exemptions would have caused a decline in certain productive sectors of the country.
However, the lawyer believes that this withdrawal will not be enough to guide development plans, since, if spending continues to increase, the government will have to continue resorting to external debt to finance itself, increasingly compromising future generations.
Instead, the jurist suggests that the government's economic team take advantage of this opportunity to introduce significant changes that moderate public spending and increase revenue without the need for new taxes, and cites Law No. 35-24 on Fiscal Responsibility of State Institutions and the draft mergers and elimination of certain state dependencies as an example of actions in that direction.
"The government can take administrative actions to reduce current spending, especially that destined for actions that do not generate a general or lasting benefit for the population, such as advertising, certain social activities, and the increase in the public payroll," he specified.
On the other hand, it proposes a national taxpayer census followed by a simplification of the registration process with the National Taxpayer Registry (RNC) and the filing of annual income tax returns for individuals, introducing a simplified tax system to fulfill all tax obligations with a single payment. In its view, this would encourage entrepreneurs to formalize their businesses, thus improving tax collection.
Regarding labor reform, Colón lamented that it would not address all the needs of the Dominican labor market, and that the proposal would not transform the severance pay system into an unemployment insurance system, nor would it make regulations more flexible for early-stage businesses, which hinders the creation of new micro-enterprises and formal jobs.
Alexis Colón. (External source).
"While we acknowledge some improvements in the labor court process, crucial aspects such as the use of medical leave and the reinstatement of employees after litigation were not addressed," stated the managing partner of the firm Colón & Partners and specialist in international commercial law.
"Greater dialogue and consensus are needed to achieve reforms that truly boost the country's economic and social development." Colón's call for reflection joins the voices of other sectors that have expressed concern about the impact of these reforms.
Colón, founder of the law firm Colón & Partners, holds two bachelor's degrees: one in law, graduating magna cum laude from the University of the Caribbean; and another in business administration, graduating summa cum laude from the Pontifical Catholic University Madre y Maestra. He was the first in his faculty to be accepted to the prestigious Georgetown University in Washington, D.C., where he earned a master's degree in international economic and commercial law, also graduating with honors.
He also studied international business at Tompkins Cortland Community College in New York and is certified in international arbitration and dispute resolution, with honors. Furthermore, he is authorized to practice law in the Dominican Republic and in the states of New York and Massachusetts, USA.
He is currently Vice President for Foreign Affairs of the Dominican Bar Association, a member of the Inter-American Affairs Committee of the New York City Bar Association, a member of the Hispanic National Bar Association, the International Association for the Protection of Intellectual Property, and the Dominican Association of Intellectual Property.
