Contributions for solid waste increase by more than 150%: key takeaways from new Law 98-25
The Executive Branch enacted Law No. 98-25 on December 16, 2025. The law introduces substantial amendments to Law No. 225-20 on Integrated Solid Waste Management and Co-processing, directly affecting operating costs, environmental obligations, and companies’ financial planning in the Dominican Republic.
What changes with Law 98-25?
The new regulation seeks to strengthen the environmental regulatory framework, promote sustainable practices, and ensure the financial viability of the national waste management system. Its main developments include:
- A significant update to the special contribution rates for solid waste management, now determined exclusively based on establishments’ annual gross revenue.
- Stronger environmental controls applicable to producers, importers, and marketers of consumer goods.
- A gradual ban on foam and single-use plastics through a phased elimination scheme starting in 2026, allowing the productive sector to adapt progressively.
- A limited exception for products incorporating certified biodegradable additives, encouraging the use of more sustainable alternatives.
- A redefinition of the role of local governments and private operators in waste management administration, along with strengthened powers for the Ministry of Environment and Natural Resources.
- Measures to prevent monopolistic practices, promoting a competitive market and new business opportunities in recycling and alternative materials production.
- Stronger financial backing for the DO Sostenible Trust, granting it greater supervisory capacity under transparency and oversight criteria.
Solid waste management contribution: before-and-after comparison
| Annual gross revenue range | Before (Law 225-20) | Now (Law 98-25) |
|---|---|---|
| Up to RD$1 million | RD$500 | RD$3,000 |
| RD$1 – RD$10 million | RD$1,500 | RD$6,000 |
| RD$10 – RD$25 million | RD$5,000 | RD$20,000 |
| RD$25 – RD$50 million | RD$30,000 | RD$155,000 |
| RD$50 – RD$100 million | RD$90,000 | RD$260,000 |
| More than RD$100 million | RD$260,000 | RD$675,000 |
Source: To’Junto
What does this mean for companies?
With the entry into force of Law 98-25:
- All companies, regardless of size, will face an increase in the mandatory contribution for solid waste management.
- This contribution is consolidated as a recurring obligation, calculated based on gross revenue information reported to the General Directorate of Internal Taxes (DGII).
- Companies will need to review tax and operating budgets, especially with respect to packaging, production materials, and logistics.
- Companies must adjust their processes and supply chains to comply with the new restrictions on foam and single-use plastics.
- Relevant opportunities open up for those investing in the circular economy, recycling, and alternative materials—sectors that will take on a more prominent role under the new legal framework.
How to prepare for these changes
Implementing Law 98-25 requires a comprehensive assessment of its legal, tax, and operational impact on each company, considering its revenue level, business model, and use of materials subject to the new restrictions.
At Pellerano & Herrera, we have a multidisciplinary team that can assist with compliance reviews, economic impact analyses, process adjustments, and the design of transition strategies aligned with the new environmental provisions.
For more information or to coordinate a tailored assessment, contact us through our form or email us at [email protected].