NewsWhore
07-31-2009, 03:40 PM
In response to National Business Council (CONEP) president Lisandro Macarulla's suggestion that the DR should change its business model, Hacienda Minister Vicente Bengoa suggested that the private business sector could give up some of the tax exemptions it receives under the same model.
He added that business receives RD$104 billion in exemptions, which is equivalent to a third of the 2009 national budget. He went on to point out that this is money the government doesn't receive as a result of the exemptions, adding that if CONEP want a change, "we can begin right there."
The business sector has said that the numbers being used by Hacienda for exemptions are distorted, as much of the exemptions are those that eliminate ITBIS tax on basic consumer products.
Bengoa says that government spending has increased due to the subsidies and exemptions it has granted to businesses. While speaking on the rise of government spending, Bengoa denied that this spending is due to an increase in wages or payroll, as has been stipulated by some economists.
He also denied that the foreign debt as part of the GDP has increased, saying it is still registered at 16%.
Customs director Rafael Camilo says that for now the DR's business model will have to depend on the services sector without disregarding the value of the production sector. Speaking at an American Chamber of Commerce luncheon earlier in the week Macarrulla said that the country needed to change its economic model for a more sustainable one. Macarrulla advocated moving from a consumer model to one based on production. During his talk, titled "Towards a Sustainable Social and Economic Model", he said: "We have come to believe that we can resolve everything with the money that comes from remittances, or from increasing the public debt, or attracting more capital. It would seem as if we do not need the productive sectors, rather just financing for consumption."
More... (http://www.dr1.com/index.html#4)
He added that business receives RD$104 billion in exemptions, which is equivalent to a third of the 2009 national budget. He went on to point out that this is money the government doesn't receive as a result of the exemptions, adding that if CONEP want a change, "we can begin right there."
The business sector has said that the numbers being used by Hacienda for exemptions are distorted, as much of the exemptions are those that eliminate ITBIS tax on basic consumer products.
Bengoa says that government spending has increased due to the subsidies and exemptions it has granted to businesses. While speaking on the rise of government spending, Bengoa denied that this spending is due to an increase in wages or payroll, as has been stipulated by some economists.
He also denied that the foreign debt as part of the GDP has increased, saying it is still registered at 16%.
Customs director Rafael Camilo says that for now the DR's business model will have to depend on the services sector without disregarding the value of the production sector. Speaking at an American Chamber of Commerce luncheon earlier in the week Macarrulla said that the country needed to change its economic model for a more sustainable one. Macarrulla advocated moving from a consumer model to one based on production. During his talk, titled "Towards a Sustainable Social and Economic Model", he said: "We have come to believe that we can resolve everything with the money that comes from remittances, or from increasing the public debt, or attracting more capital. It would seem as if we do not need the productive sectors, rather just financing for consumption."
More... (http://www.dr1.com/index.html#4)