IMF visit to DR reignites discussion on tax reform

Santo Domingo. - The visit of a delegation from the International Monetary Fund (IMF) that began a tour yesterday to assess the Dominican economy, puts on the table the discussion about a fiscal reform in the Dominican Republic. In that sense, economist Daris Javier Cuevas said that in accordance with article 4 of the constitutive part of the fund, this body has the power to visit member countries to request some information and make recommendations for the place. He explained that the country does not have an agreement with the IMF, and in the current economic situation, if a stand-by agreement arises, as a result of the observations that the presence of the organization for 12 days in the country may leave, the Government would be compelled to work on a fiscal reform. "There are many restrictions that would subject the government, among which would be lowering, for example, the subsidy to the electricity sector, lowering the debt ceiling and resolving the budget deficit through reduction, which would be an iron shirt on which the government would face and I don't think the government has that will," said the expert in economic matters.

Regarding the effects that a possible agreement would have on the country's economy, he indicated that, historically, every agreement with the IMF ends in negative effects for the purchasing power of the person.

On the subject, Deputy Charlie Mariotti stated that he hopes that what comes out of the IMF meetings will benefit the population and if the Government is going to make reforms, they should first focus on tax evasion and not charge more to those who need help to make ends meet.

You may be interested in:IMF begins consultation with the Dominican economy after withdrawal of tax reform

"The Government has repeatedly said that we will not have tax reform, so we are going to see what comes out of these meetings, our projection is that what is happening with the economy does not respond to external factors, it responds to the low investment in capital expenditure that the 2025 budget had and that was modified now," added the legislator. The International Monetary Fund (IMF) mission will remain in the Dominican Republic until next September 12, with an agenda focused on the analysis of the national economy and its prospects. During this period, the team will evaluate the impact of external factors on the country's economic performance, as well as the main risks and growth opportunities, with special attention to the fiscal and monetary areas. As part of its work program, the IMF will review the economic results of the first half of 2025, the projections for the second half of the year, and the strategic guidelines of the 2026 budget. In addition, it will examine the medium-term fiscal framework and the public debt management and financing plans, which are projected with a horizon up to 2035.