Dominican Republic on Edge as US Remittance Tax Looms

Dominican Republic Awaits Impact of Proposed US Remittance Tax Santo Domingo, Dominican Republic – A proposed 3.5% tax on remittances from the United States, currently making its way through the US Senate, has Dominicans on edge. The potential impact on the Dominican economy, heavily reliant on remittances, is a major concern. "The people will pay their taxes," stated one money exchange worker, expressing a common sentiment of resignation. However, others are more apprehensive. Another interviewee voiced concern that a 20% tax, for example, could lead to a significant reduction in the amount of money sent home to families. Last year alone, $11 billion in remittances flowed into the Dominican Republic, equivalent to 11% of the country's GDP. Economist Iridian Medina believes the new tax will have repercussions, affecting both those sending and receiving money, potentially slowing economic growth. The proposed legislation targets remittances from non-citizens and non-permanent residents of the US. While the immediate impact remains uncertain, the Dominican Republic anxiously awaits the Senate's decision and the potential consequences for its economy.