NewsWhore
07-22-2010, 03:30 PM
The DR is already one of the Latin American and Caribbean countries with the highest fuel prices, but the government has decided to raise taxes even higher. The fuel price increases will trigger inflation as prices of consumer goods go up, the higher cost of running alternate power plants and transport is passed on to consumers. A spokesperson for the Association of Industries of the DR said that the increase would affect the competitiveness of local manufactured goods. A recent study showed that Dominican fuel prices are already 11.5% more than the Central American average.
Hacienda Minister Vicente Bengoa says it will be sending to Congress a bill that would increase the tax on regular gasoline from RD$41 to RD$50 and that on premium gasoline to RD$47 to RD$55. Bengoa did not say what the increase in diesel and avtur would be, but he said only propane gas would not be affected by the proposed increases. The bill is intended to increase revenues for the government that is showing a deficit. News commentators attribute the deficit to excessive spending on behalf of the Fernandez administration in the first five months of the year to ensure a clean sweep in the congressional election in May 2010, as occurred.
The bill proposes indexing fuel prices annually, unifying the collection of taxes under the DGII and that the Ministry of Hacienda fix the fuel prices. Previously this was responsibility of the Ministry of Industry & Commerce.
Another bill contemplates eliminating all exemptions granted to government institutions, with the exception of the ministries of Education and Public Health.
More... (http://www.dr1.com/index.html#2)
Hacienda Minister Vicente Bengoa says it will be sending to Congress a bill that would increase the tax on regular gasoline from RD$41 to RD$50 and that on premium gasoline to RD$47 to RD$55. Bengoa did not say what the increase in diesel and avtur would be, but he said only propane gas would not be affected by the proposed increases. The bill is intended to increase revenues for the government that is showing a deficit. News commentators attribute the deficit to excessive spending on behalf of the Fernandez administration in the first five months of the year to ensure a clean sweep in the congressional election in May 2010, as occurred.
The bill proposes indexing fuel prices annually, unifying the collection of taxes under the DGII and that the Ministry of Hacienda fix the fuel prices. Previously this was responsibility of the Ministry of Industry & Commerce.
Another bill contemplates eliminating all exemptions granted to government institutions, with the exception of the ministries of Education and Public Health.
More... (http://www.dr1.com/index.html#2)