NewsWhore
07-15-2010, 03:10 PM
It seems the government plans to cut incentives for business, instead of cutting back on its own superfluous spending. National Business Council president Lisandro Macarulla is concerned about the government's plan to modify the Proindustria Law 392-07, as announced by Hacienda Minister Vicente Bengoa. Macarrulla says that the formal business sector already carries 26.2% of all taxes, and 75% of all taxes paid by business.
As reported in Clave newspaper, Bengoa has already announced that the government plans to send two bills to Congress aimed at reducing tax exemptions. The ruling PLD party is majority in Congress.
The proposed changes include the elimination of ITBIS exemptions under Law 392-07 on Competitiveness and Industrial Innovation. The government is also proposing to transfer the role of collecting and monitoring the selective tax on consumption of fuels to the Department of Taxes (DGII). This role was previously exercised by the Treasury.
A source told Clave that the intention is to gradually eliminate the incentives granted to the local manufacturing sector. These include exemptions on imported raw materials, industrial machinery and other capital goods.
Clave says there is no intention to modify Law 158-01 that grants incentives for the tourism sector, or Law 2801 that creates the special border tax zone.
Clave says that the government and the International Monetary Fund (IMF) have agreed to eliminate exemptions such as those of the Proindustria law, and control the undervaluation of imports of fuels by companies that have been authorized to import fuel without paying taxes.
See the July 15 issue of Clave at www.clavedigital.com (http://www.clavedigital.com)
More... (http://www.dr1.com/index.html#7)
As reported in Clave newspaper, Bengoa has already announced that the government plans to send two bills to Congress aimed at reducing tax exemptions. The ruling PLD party is majority in Congress.
The proposed changes include the elimination of ITBIS exemptions under Law 392-07 on Competitiveness and Industrial Innovation. The government is also proposing to transfer the role of collecting and monitoring the selective tax on consumption of fuels to the Department of Taxes (DGII). This role was previously exercised by the Treasury.
A source told Clave that the intention is to gradually eliminate the incentives granted to the local manufacturing sector. These include exemptions on imported raw materials, industrial machinery and other capital goods.
Clave says there is no intention to modify Law 158-01 that grants incentives for the tourism sector, or Law 2801 that creates the special border tax zone.
Clave says that the government and the International Monetary Fund (IMF) have agreed to eliminate exemptions such as those of the Proindustria law, and control the undervaluation of imports of fuels by companies that have been authorized to import fuel without paying taxes.
See the July 15 issue of Clave at www.clavedigital.com (http://www.clavedigital.com)
More... (http://www.dr1.com/index.html#7)