Finance Minister Jochi Vicente said on Thursday that the government had never considered applying a remittance tax, as proposed by the Dominican consul in New York, Eligio Jáquez.
Vicente described the measure as illogical and impractical and, at the same time, thanked the great effort made by Dominicans abroad to help their families, especially in this time of economic crisis, when remittances have increased the most in the last ten years.
“The government has never considered a remittance tax. Such a measure would be illogical and impracticable. We thank our brothers from abroad for the great effort they make to help their relatives living in our country “, the minister declared through his Twitter account.
The government never considered a remittance tax. Such a measure would be illogical and impracticable. We thank our brothers abroad for their efforts to help their relatives living in our country.
– Jochi Vicente (@jochivicente) January 21, 2021
The Minister of Economy, Planning and Development, Miguel Ceara Hatton, also declared, through the same social network, that the Government never thought of imposing a tax on remittances.
question
The proposal, which Jáquez later said was not his idea, was questioned by former Minister of Economy, Planning and Development Juan Ariel Jiménez, who said that this suggestion is an economic and social mistake and “a disregard for the enormous effort made by our family and friends abroad.”
Jiménez explained that this would be a regressive tax that would further affect low-income families and lead to greater financial informality.
“Instead of taxing remittances, let’s discuss public policies to reduce the cost of the transaction; facilitating support for activities such as savings / home purchases / educational expenses; scheduling periodic shipments; and so on “, Proposed the former official.
The proposal
Also through his Twitter account, Jáquez clarified that the idea of tax remittances at 0.01% for financing development projects for the benefit of the diaspora it is not yours and that “it was not explicit, understood or not in turn.”
“As for me, I leave the problem where I found it,” he said.
Grow
Recently, the Central Bank of the Dominican Republic (BCRD) reported that in 2020 remittances have reached the largest increase in ten years, registering an amount of 8,219.3 million USD, with 16.0% over 2019.
By December, the inflow of remittances into the country reached $ 872.3 million, up $ 215.6 million (32.8%) from the same month last year. USD 656.7 million, indicated institution.
83.8% of remittances that arrived in the country in the last eight months came from the United States.
It would seem that the idea, which is not mine, of taxing remittances at 0.01% to finance development projects for the benefit of the diaspora, has not been explicit, understood or is not in turn.
As for me, I leave the subject where I found it!– Eligio Jáquez (@eligiojaquez) January 21, 2021