He cited the growth of the real estate sector as a clear example, where investment funds have played a fundamental role. Local companies have been able to finance large housing projects through the stock market, benefiting both developers and families who now have access to more affordable and better-quality housing.
SANTO DOMINGO. - Speaking at the public hearings held in the National Assembly Hall of the National Congress, Santiago Sicard, president of the Dominican Association of Investment Funds (Adosafi), said this Thursday that the Fiscal Modernization bill threatens investment because it disproportionately taxes small capital and, furthermore, destroys the progress made in inclusion and formalization of the Dominican population.
He stated that paragraphs 3 and 4 of article 51 of the proposed law constitute a regressive tax and a death blow to investment funds, which are one of the few mechanisms that promote saving and investment in the country in a transparent manner.
He argued that a strong stock market is essential for the development of any emerging economy, and in this case, the evolution of this market is key to improving the country's rating and advancing in international competitiveness rankings.
“Today we are gathered here with a shared concern about the impact that the proposed tax reform could have on the development of the Dominican Republic, and consequently on investments and the stock market; a sector that has proven to be vital to the country's economy,” he said.
He argued that it is crucial to highlight the role of investment funds as key players in this process of growth and democratization of the financial market. He noted that the Dominican Republic's stock market has not only allowed large companies to access financing, but has also opened opportunities for small and medium-sized investors who would otherwise not have access to these instruments.
Santiago Sicard. (External source).
He stressed the importance of evaluating the impact of this reform on key sectors such as tourism, free trade zones and real estate, which generate jobs, foreign exchange and well-being, and evaluating the tax incentives that affect strategic sectors such as tourism, free trade zones and the real estate sector, which are currently important destinations for investment fund resources.
He asked for a review of the efficiency of tax exemptions, because if this reform is approved as proposed, those investments will go to Mexico, Costa Rica, El Salvador, Guatemala, Jamaica, and there will be no growth in free trade zones or tourism, which are the biggest producers of jobs and foreign exchange.
In summary, the tax reform, as currently proposed, threatens to dismantle a market that, although young, has proven to be an effective path to economic growth and financial inclusion.
In summary, he stated that investment funds are currently the main private issuers in the Dominican stock market and through them wealth is generated not only for investors, but also for the country in general, formalizing and making transparent to the State the results of productive activities.
"These funds have allowed the savings of many Dominicans, including workers and future pensioners, to participate in value creation through a regulated and efficient mechanism that pays taxes compliantly and transparently.".
He cited the growth of the real estate sector as a clear example, where investment funds have played a fundamental role. Local companies have been able to finance large housing projects through the stock market, benefiting both developers and families who now have access to more affordable and better-quality housing.
