Santo Domingo.- APROCOVICI, ADECLA, AEI and the Dominican Association of Housing Builders and Developers (ACOPROVI) are worried. They fear the proposed tax reform could greatly affect the construction sector, especially housing, by increasing costs.
The housing sector may see a 30% price spike due to tax rate elimination for housing trusts, and the new VAT on home sales and related services. These changes would increase housing costs by 12.5% and 18% respectively. Additionally, 59% of Low Cost Housing projects may no longer qualify for governmental aid, impacting six in ten Dominican families.
Rent prices could also rise due to reduced housing availability and increased owner costs. With new taxes on short-term rentals, housing demand may drop by 56%, leading to a decrease in investment and job losses in the sector. The construction sector is urging government to review and mitigate these fiscal measures. They are keen to collaborate with the government to find constructive solutions.