Dominican Republic and Costa Rica debate tax reforms amid fiscal deficits

In the Dominican Republic, Finance Minister Magín Díaz said the country must resume a tax reform to strengthen public finances and reduce distortions, while President Luis Abinader warned that conditions for an integral fiscal overhaul are not yet present. The 2026 budget projects a financial deficit of roughly RD$280.6 million, prompting calls to focus reforms on combating tax evasion rather than raising rates.

In Costa Rica, priest Jeison Víquez of the Tilarán‑Liberia diocese criticized a proposal to lift the VAT on the basic food basket to 13%, arguing it would erode household purchasing power, slow consumption, and harm the broader economy. He urged alternatives such as improving tax enforcement, eliminating redundant exemptions, and increasing public‑spending efficiency instead of taxing essential goods.

Both countries face pressure to close fiscal gaps while avoiding measures that could hurt low‑income families.