Representatives of business organizations are meeting at the Presidential Palace today to listen to the government's explanations for the proposed reductions in business incentives and increases in the cost of petrol.
Spokespersons for the Association of Industries of Herrera (AEIH) and the Federation of Industrial Associations (FAI) are urging the government to eliminate what they describe as "shameless waste" in government spending.
The business leaders are calling for the need for a fiscal pact that guarantees financing for development and an improvement in the quality of government spending.
In a joint statement, the business organizations called on the government to commit to transparency and probity in its handling of its budget, and equity in the fiscal burden.
The entities believe that the government should be reduced in size, eliminating unnecessary ministries and 80% of the deputy ministries, consuls and deputy consuls that are paid without working, and the civil aides and advisors who are a burden on the state payroll and do not contribute to the country's development.
AEIH president Wadi Cano Acra said that the fiscal burden should not only affect those who pay the most, mentioning that the manufacturing sector that represents 19.6% of the GDP is responsible for 34.7% of taxes.
Ignacio Mendez, speaking for FAI, said that the tax agreement has to eliminate the "shameless waste in spending, the other payrolls, the double exonerations for legislators' luxury vehicles, and the so-called extra budgets at the discretion of the legislators".
Mendez described a statement by Economy Minister Temistocles Montas as simplistic after the latter justified the tax increase by saying that in developed countries, the tax burden is 40%. "In those countries, there is no state wastefulness, they have higher human development levels, high index of strong institutions that guarantee that the taxes paid by the citizens are returned in public services and in quality of life," he explained. In the DR, the middle and upper classes pay most taxes but also have to pay for private school, health, security, back-up electricity, potable water services, etc.
www.elnacional.com.do/nacional/2010/8/1/56163/...

More...