NewsWhore
07-04-2006, 04:11 PM
Notwithstanding the windfall of taxes due to the delay in implementing of DR-CAFTA, the director of the National Budget, Luis Hernandez complained that the government is not receiving enough revenue to cover the 2006 budget expenditures and needs more taxes to compensate for the elimination of the 13% transitory tax this month.
Economist Arturo Martinez Moya explained the government needs the extra revenues produced by the delay in entering DR-CAFTA to cover the fiscal gap left by its overspending during the congressional and municipal electoral campaign in the first half of the year.
Meanwhile, car importers say that the government already has compensated for the loss in revenues, at least in the case of their sector. As reported in Diario Libre, since January of this year the government levied a 17% surcharge on the CIF cost of the vehicle to cover newly created charges of right to car plate and registration, when vehicles were excluded from paying the 13% transitory tax. In addition to this 17% surcharge, 0.4% charge on 1% of the CIF value is being levied as of July on all imports to help pay for the modernization of Customs clearance. The car importers say that the public can forget about price reductions in the case of vehicles, because what there has been is an increase in taxes. Customs Department technical deputy director Eduardo Rodriguez had commented that there should be substantial reductions in consumer prices to reflect the elimination of the 13% transitory tax.
Link To Original Article (http://www.dr1.com/index.html#6)
Economist Arturo Martinez Moya explained the government needs the extra revenues produced by the delay in entering DR-CAFTA to cover the fiscal gap left by its overspending during the congressional and municipal electoral campaign in the first half of the year.
Meanwhile, car importers say that the government already has compensated for the loss in revenues, at least in the case of their sector. As reported in Diario Libre, since January of this year the government levied a 17% surcharge on the CIF cost of the vehicle to cover newly created charges of right to car plate and registration, when vehicles were excluded from paying the 13% transitory tax. In addition to this 17% surcharge, 0.4% charge on 1% of the CIF value is being levied as of July on all imports to help pay for the modernization of Customs clearance. The car importers say that the public can forget about price reductions in the case of vehicles, because what there has been is an increase in taxes. Customs Department technical deputy director Eduardo Rodriguez had commented that there should be substantial reductions in consumer prices to reflect the elimination of the 13% transitory tax.
Link To Original Article (http://www.dr1.com/index.html#6)