The initiative was approved urgently in two consecutive readings and incorporates changes to lottery prizes, casino taxation, and benefits for some emergency teams
SANTO DOMINGO.– The Bill on Measures for Economic Growth, Tax Simplification and Mitigation of the International Crisis passed its first major legislative hurdle this Wednesday, after the Senate approved it in two consecutive readings and sent it to the Chamber of Deputies for final discussion.
The bill, promoted by the Executive Branch in response to the economic impact of rising oil prices and international fiscal pressures, was approved under an emergency procedure, a mechanism that allows for the approval of an initiative in its first and second readings during the same session.
With the support of the ruling majority and its allies, the project was approved after accepting the favorable report of the bicameral commission chaired by Senator Pedro Catrain, which introduced several modifications to the original text.
Changes introduced by the senators
Among the approved changes is a differentiated tax scale for lottery winnings. Prizes between RD$200,000 and RD$600,000 will be taxed at a rate of 15%, while those exceeding RD$600,000 will be taxed at 25%.
In addition, lawmakers adjusted the tax regime applicable to casinos and lottery banks, incorporated exemptions for the importation of ambulances, fire trucks and garbage compactors, and made technical modifications related to the Social Security Treasury (TSS).
It was also specified that the temporary increase in the Income Tax rate for large taxpayers will only be maintained between 2026 and 2028, subsequently returning to the current rate.
A proposal to raise up to RD$50 billion
The initiative is part of the economic package presented by the Minister of Finance and Economy, Magín Díaz, with the aim of strengthening state revenues without increasing the ITBIS rate or creating taxes on digital platforms.
Among the measures contemplated are the elimination of the advance payment for micro-enterprises, an amnesty for tax debts, the reduction of the Income Tax on capital gains in the sale of real estate from 25% to 10%, the increase of the deductible percentage for educational expenses and the indexation of the salary exempt from Income Tax up to RD$39,900 per month.
According to official estimates, the set of measures would allow the collection of between RD$40 billion and RD$50 billion to address the economic impact of the international crisis and the growing cost of fuel subsidies.
Debate and divided votes
During the discussion, Senator Omar Fernández of the National District submitted proposals to expand salary indexation and extend the elimination of advance payments to small businesses, but both initiatives were rejected by the majority.
The legislator argued that, although the project contains positive elements, the fiscal burden falls on taxpayers while public spending continues to grow.
Senator Antonio Taveras, for his part, voted in favor of the project, although he described it as a "light" reform, considering that it responds to the current needs but does not address long-term structural transformations.
With the Senate's approval, the proposal now goes to the Chamber of Deputies, which must decide whether to make it law or introduce new modifications before sending it to the Executive Branch for its enactment.
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