The peace agreement they pronounced Iran and the United States to end almost four months of war and proceed to reopen the Strait of Hormuz will not imply the suspension of the package of measures encouraged by the Dominican State, as explained by the Minister of Finance and EconomyMagín Díaz.
“Yes, we are still going. Obviously, welcome that announcement according to what is apparently going to be formalized on Friday and, obviously, any reduction of the oil price helps us… Crisis or no crisis, this is a project that structurally improves the tax system and we are taking advantage of the situation to do so,” he noted.
Although the announcement among foreign nations drove down oil prices, the official explained that to date the Government has allocated more than 20 billion pesos to the fuel subsidymore than two billion pesos to fertilizers and additional expenses in protection programs, thus justifying the continuation of the proposal.
Named as “Pro Measurements–Growth Economic, Fiscal Simplification and Mitigation of the International Crisis”, and not tax reform because it also responds to an incentive plan according to Magín Díaz, it was sent last Friday to the National Congress to modify the Tax Code with the objective of raising approximately 50,000 million additional pesos for the budgetor annual of the State.
With the phrase “it is the closest thing to magic that we can do,” he reported that numerous incentives are made to taxpayers and companies to boost the national economy and “make life easier for taxpayers.”
He considered that at this point there is no reason to withdraw it from Congress and even more so if the benefits it brings to the middle class are taken into account, such as not touching the majority of taxes and the Income tax (ISR) affects at least 1% of taxpayers.
“The income tax is going to be paid by 0.8% of the companies, which are the largest in the country. The measure of indexing the minimum and exempt brackets leaves out 85% of the population of employees; the increase in the marginal income tax rate to 27% affects 0.25% of the taxpayers. So, this is a highly progressive project, which is what society was demanding. It does not fall into the reform category because the amount that has been torn is minimal and it is also the first time that a government gives up so many taxes”, he confirmed.
Magín Díaz alleged that it is a project with numerous beneficial measures for the middle class, listing that with the elimination of advancesthe 1% tax on company incorporation, the 2% on mortgages, the tax on life insurance and late payment surcharges, this is a proposal like “there probably has not been in recent decades.”
MSMEs
referring to MSMEsthe economist explained that, even though the elimination of the advance payment only benefits microbusinesses, for small businesses, according to the classification of the law, the advance payment is being “considerably improved,” proposing that they go from 12 annual payments to three payments a year, similar to individuals.
In general terms, he added that this elimination will cover almost 80% of the country’s companies, describing it as an important advance.
