In brief
The Dominican Republic increased its vehicle circulation tax for 2026–2027 by 500 pesos for older cars and 4,000 pesos for newer models, prompting criticism from social groups and the PLD’s Vanguardia del Pueblo. The government cites inflation as the reason, a claim that remains contested.
Santo Domingo, Nov. 1 – The Dominican Republic’s General Directorate of Internal Taxes lifted the vehicle circulation tax for the 2026–2027 period, a move that has ignited criticism from social groups, trade unions, and the PLD‑affiliated Vanguardia del Pueblo.
The new rates require owners of vehicles manufactured up to 2021 to pay 2,000 pesos (roughly $32) – a 500‑peso rise over the previous period – while owners of vehicles built from 2022 onward face a 4,000‑peso fee (about $64).
In a piece titled “Emptying Citizens’ Pockets,” journalist Héctor Olivo of Vanguardia del Pueblo argued that the hike adds an extra burden on families, exacerbated by rising fuel, electricity, food, and other living costs.
Olivo quoted the government’s explanation that the rates had been unchanged since 2016 and that cumulative inflation during that span has exceeded 58 percent. He challenged the justification, suggesting it contradicts the official narrative on price control.
Neighborhood, labor, and community groups warned of possible protests demanding the reversal of the increase, labeling it harmful to the general public.
While the DGII maintains the inflation claim, critics view the adjustment as excessive and are calling on the agency to reconsider the measure.