Santo Domingo.- Tax breaks cost the government RD$118.0 billion (US$3.0 billion) each year, which could raise the funds which would comply with the Constitutional mandate of spending 4% of the GDP on education.
Chamber of Deputies Finance Committee president Marino Collante on Tuesday said the exemptions have no reason to continue and should be discussed as part of the comprehensive tax reform proposal, once Dominican Republic signs a pact with the International Monetary Fund (IMF).
He noted that during the election campaign both Danilo Medina and ex president Hipolito Mejia pledged the reform to the private sector.
"There are business leaders who call the devil and then don’t want to see him coming. There are 118 billion pesos of tax exemptions that no longer serve any purpose."
He said there are companies whose reasons given to get the exemptions are gone, and some of them have even closed but continue to receive them, hurting tax revenue.
He added that there are many people who’ve made ??a fortune at the expense of government revenue. "Many of them have long gotten old because the exemptions are issued when starting an activity, and the government gives them for 10, 5, 15 years, but that can no longer be.”