NewsWhore
04-12-2010, 07:20 PM
Former Central Bank operations director, economist Apolinar Veloz is advising the government to reduce the value added tax (ITBIS), one of the highest in the world, instead of eliminating exemptions taking up the recommendation by the International Monetary Fund. He also rejected the idea of increasing the cost of electricity to paying clients, as also considered in the Letter of Intent to the IMF. He said the system continues to carry inefficiencies in transmission and power distribution.
Veloz said that imposing new taxes on food would be particularly harsh on middle class and low-income sectors that already have to spend increasingly larger percentages of their total income on food, unlike the wealthy.
He commented that the IMF seeks to find ways of ensuring that the government will pay its international debt commitments in view of the government's continued excessive spending.
Veloz commented that the government is only half way towards applying the petroleum law that stipulates that fuel prices should fluctuate according to international prices. This means that the price of fuel should also go down when international prices decline.
He said the IMF is suggesting that the government should reduce the trade balance through exchange depreciation, as reported in Hoy.
More... (http://www.dr1.com/index.html#9)
Veloz said that imposing new taxes on food would be particularly harsh on middle class and low-income sectors that already have to spend increasingly larger percentages of their total income on food, unlike the wealthy.
He commented that the IMF seeks to find ways of ensuring that the government will pay its international debt commitments in view of the government's continued excessive spending.
Veloz commented that the government is only half way towards applying the petroleum law that stipulates that fuel prices should fluctuate according to international prices. This means that the price of fuel should also go down when international prices decline.
He said the IMF is suggesting that the government should reduce the trade balance through exchange depreciation, as reported in Hoy.
More... (http://www.dr1.com/index.html#9)