SANTO DOMINGO.- Economists from the Autonomous University of Santo Domingo (UASD) yesterday called for a detailed analysis of the Property Tax (IPI), as it appears to be the segment of the population most affected by the tax reform.
Nicolás Jiménez, director of the School of Economics at UASD, and Antonio Ciriaco, dean of the Faculty of Economic and Social Sciences, expressed their concern about the proposal presented by the government in the Fiscal Modernization Law, noting that this measure would significantly affect the middle class in the Dominican Republic.
Jiménez argued that the measure could impoverish those who will now have to pay taxes on homes that were previously untaxed.
Ciriaco, on the other hand, suggests that the IPI should be moderated. "Either you increase the exempt amount slightly, or you lower the rate from 1% to half a percentage point as a way to moderate it, because otherwise, it will have an impact on the real estate market in the sense that it will increase housing prices and rental prices," Ciriaco pointed out.
He said that this tax not only affects the middle class, but also increases the cost of rents.
He explained that the problem is worsening because many homes have increased in value, exceeding the new tax-exempt amount of five million pesos. "This means that middle-class families will face higher taxes when buying or renting homes, exacerbating the financial burden on this sector," he said.
Antonio Ciriaco. (External source).
Both economists spoke within the framework of the Second Dominican Economic Congress – Fiscal Reform and Development Model – which has been taking place since yesterday at the UASD.
With information from Diario Libre.
