SANTO DOMINGO — The Dominican government announced plans to implement new or increased taxes aimed at generating approximately $800 million in additional annual revenue. Officials stated the additional revenue is intended to offset rising oil prices, which they attribute to the Iran war.

Among the proposals is a 30 percent income tax increase for three years on companies earning more than $17 million annually. Other measures include a $10 increase on airline tickets and new taxes on casinos, gambling, and electronic cigarettes.

The administration also proposed customs taxes on certain imports and monitoring systems for cigarettes and alcoholic beverages. Tax exemptions would apply to micro-enterprises and individuals earning less than $680 per month. The tax proposals are expected to take effect in January 2027.

The Dominican Congress, which is dominated by President Luis Abinader's party, is scheduled to debate these tax proposals. Officials anticipate that the Congress will approve the proposed measures. The country has a population of 11.6 million people and a poverty rate of 17 percent.

The government currently allocates weekly subsidies to prevent passing rising fuel costs to consumers. Approximately $350 million has been allocated for fuel subsidies so far this year. Officials estimate an additional $400 million in fuel subsidies will be required if West Texas Intermediate crude, a U.S. oil price benchmark, remains between $90 and $100 per barrel. The National Council of Private Enterprise suggested that the government focus on the informal sector to increase revenue.

No independent assessment of Dominican Republic’s claims was available.