SANTO DOMINGO – In a detailed presentation to congressional lawmakers this week, Dominican Republic Finance and Economy Minister Magín Díaz has outlined a progressive new tax reform framework that would shift nearly all new revenue collection to the nation’s wealthiest demographic. The proposal, officially named the Economic Growth, Tax Simplification and International Crisis Mitigation Bill, is crafted to shore up the country’s fiscal standing while shielding lower-income groups, the middle class, and micro, small and medium-sized enterprises (MSMEs) from additional financial strain.
Addressing the bicameral congressional commission tasked with reviewing the legislation, Díaz confirmed that more than 90 percent of the new revenue generated by the bill would come from the top 1 percent of earners in the Dominican Republic. Unlike broad-based tax increases that have drawn public criticism in previous reform efforts, this proposal does not raise the value-added tax (locally known as ITBIS) and will not impose new tax obligations on small business operators.
Minister Díaz projected that the adjusted tax policies would bring in between 40 billion and 50 billion Dominican pesos in new annual revenue. He framed the plan as a measured, fair solution to the ongoing economic headwinds facing the small Caribbean nation, with core goals of cutting the national fiscal deficit, keeping critical social subsidies in place, and preserving the macroeconomic stability that has supported Dominican growth in recent years.
A key component of the government’s pitch for the bill is a commitment to full fiscal transparency. Díaz announced that the executive branch will put in place a formal accountability mechanism that will track both the real-world impact of the new tax measures and how all collected revenue is allocated and spent. During the question-and-answer portion of the commission session, the minister responded to inquiries from both ruling party and opposition legislators, and reaffirmed the administration’s openness to ongoing constructive dialogue throughout the legislative review process, backed by peer-reviewed technical data and independent economic analysis.