The National Business Council (Conep) has released the findings of an EcoCaribe study that shows that the fiscal burden in the DR is 20%, not the 16% cited by the government. The study, which was published yesterday, found that the 16% figure does not include the taxes paid for social security, municipal taxes, the electricity subsidy, banking supervision charges, and the charges paid to the National Housing Institute (Inavi) and the National Training Institute (Infotep) that add up to 3.28% of Gross Domestic Product, bringing the total to 20%.
Conep says that the weight of paying taxes is on relatively few, both when it comes to evasion and the strong presence of the informal sector. The study indicated that the burden for the formal sector is 26.2%, while the informal sector only carries 10.2% in taxes.
The study concludes that 20% is high compared to the DR’s main competitors in Central America.
Conep says that the formal sector of the economy pays 75.8% of the taxes.