The government orders a lockdown to confront the threat of COVID-19

DOMINICAN REPUBLIC - In Brief 18 Mar 2020 by Pavel Isa

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Last night, President Medina announced a set of policy measures to confront the threat of the novel coronavirus. He announced that he will request Congress the declaration of National Emergency. The usefulness of this is not clear and for what exactly would he use the powers granted by the declaration. Regarding health prevention, the government ordered: - Total closure of borders for passenger transit for 15 days. This may be insufficient and may be extended. The impact on tourism will be devastating. - Suspension of all non-essential economic activities (commerce, industries, services). The essential activities are the sale of food, fuel, medicines and health services, among others. The capacity of the State to enforce this beyond the formal sector of the economy is not entirely clear. More than 50% of the work force is employed in informal activities, most of them for a day-to-day low income. - Suspension of face-to-face teaching in all schools and universities in the country. - Close of all restaurants. They will have limited for take-out and delivery. - Reduction in the attendance of public employees and leave for all those over 60 years of age. Regarding health care: - Expansion of the number of establishments with isolation areas to treat COVID-19 positive patients - Certified private laboratories may carry out tests for COVID-19 - Expanded coverage of HMOs to include treatment for COVID-19 In economic matters: - Exceptional tax treatment for the hotel sector. This measure will not have much impact on the sector because its contributions and tax burden are effectively low. - Postponement of obligations and spacing in the time of payment of income tax to companie...