The Association of Industries of the Dominican Republic (AIRD) demanded an end to the “Short-termism in fiscal matters” and adhere to the mandate of the National Development Strategy Law (END), which mandates that the pacts be discussed at the Economic and Social Council (CES).
In a press release, the AIRD that presides Celso Juan Marranzini affirms that he is aware that the country’s tax system requires updating. However, this is not the time for a hasty tax reform, which would put a brake on it and constitute an obstacle to recovery.
“It is necessary to put an end to short-termism in fiscal matters and embrace the mandate of the National Development Strategy Law, which indicates that the Economic and Social Council is the space for discussion and concretion of pacts between the different economic and social forces that allow the adoption of policies that, by their nature, require a commitment from the State and the cooperation of the entire nation, such as the Fiscal Pact ”, he indicates.
This fiscal pact, he adds, is aimed at financing sustainable development and guaranteeing long-term fiscal sustainability, through a comprehensive tax restructuring.
The world economy has been shaken by the health cataclysm of COVID-19 and “in this context, the Dominican economy is in the process of recovery.”
This is not the time for a hasty tax reform, especially when high commodity prices and extraordinary increases in maritime freight are external factors that companies have momentarily assimilated, but which at a certain point could translate – together with a short-term tax reform scheme – into inflationary pressure that is difficult to implement. overcome, he said.
Until now Government policies have facilitated economic recovery, a high climate of confidence, stability, recovery of employment to pre-Pandemic levels, with large investments underway. It is time to consider a procedure that could imply a setback. .
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