NewsWhore
07-23-2010, 05:00 PM
The increase of the tax on all the fuels, except propane gas, announced by the Hacienda Minister Vicente Bengoa has been met with broad rejection from the whole country. Economists, business, social, political leaders maintain the increase will trigger inflation and unpredictable negative consequences. The press is covering the opposition to the change in the Hydrocarbons Law 112-00.
Marisol Vicens Bello, the president of the Confederation of Employers (Copardom), said that the modification of Law 112-00 will mean less formal jobs and reduced competitiveness of businesses. She said the indexing that should have begun in 2007 was delayed because of political reasons. The indexing should have been done gradually since 2007, but now, after two electoral processes, she explained the government wants to blind-side everyone by collecting all at once the taxes that should have been collected over time.
On his part, Pedro Perez, president of the National Organization of Malls (ONEC) said that the modifications to the Proindustry and the Hydrocarbons laws will be counter-productive, and will result in a loss of productive jobs. Perez said the indexing will affect consumer goods and the cost of transportation, which, in turn, will increase prices and reduce the purchasing power of consumers. He said that the state instead should send clear signals that it is willing to take on sacrifices such as reducing and eliminating the unnecessary and unproductive expenses and making sure that any tax exemption produces the results for which it was granted.
In the meantime, Miguel Antonio Roig, the president of the National Association of Young Entrepreneurs (ANJE), forecast a domino effect on everyone, from the farmer, the small beauty salon owner to the large manufacturer.
Economist Henri Hebrard said that indexing the fuels will produce an important increase in consumer prices, since the prices for premium and regular gasoline will go up by RD$8.24 and RD$7.29 a gallon each.
Luis Nunez, the president of the ACIS, objected to the modification of the Hydrocarbons Law 112-00 to raise government revenues because it affects all productive activities.
Also the Father Juan Montalvo Center for Social Studies criticized the announcement made by Hacienda Minister Vicente Bengoa regarding the increase in fuel taxation.
Presidential hopeful from the PRD party, Luis Abinader defined the government's announced decision to increase the taxes on fuels as a complete blunder.
More... (http://www.dr1.com/index.html#5)
Marisol Vicens Bello, the president of the Confederation of Employers (Copardom), said that the modification of Law 112-00 will mean less formal jobs and reduced competitiveness of businesses. She said the indexing that should have begun in 2007 was delayed because of political reasons. The indexing should have been done gradually since 2007, but now, after two electoral processes, she explained the government wants to blind-side everyone by collecting all at once the taxes that should have been collected over time.
On his part, Pedro Perez, president of the National Organization of Malls (ONEC) said that the modifications to the Proindustry and the Hydrocarbons laws will be counter-productive, and will result in a loss of productive jobs. Perez said the indexing will affect consumer goods and the cost of transportation, which, in turn, will increase prices and reduce the purchasing power of consumers. He said that the state instead should send clear signals that it is willing to take on sacrifices such as reducing and eliminating the unnecessary and unproductive expenses and making sure that any tax exemption produces the results for which it was granted.
In the meantime, Miguel Antonio Roig, the president of the National Association of Young Entrepreneurs (ANJE), forecast a domino effect on everyone, from the farmer, the small beauty salon owner to the large manufacturer.
Economist Henri Hebrard said that indexing the fuels will produce an important increase in consumer prices, since the prices for premium and regular gasoline will go up by RD$8.24 and RD$7.29 a gallon each.
Luis Nunez, the president of the ACIS, objected to the modification of the Hydrocarbons Law 112-00 to raise government revenues because it affects all productive activities.
Also the Father Juan Montalvo Center for Social Studies criticized the announcement made by Hacienda Minister Vicente Bengoa regarding the increase in fuel taxation.
Presidential hopeful from the PRD party, Luis Abinader defined the government's announced decision to increase the taxes on fuels as a complete blunder.
More... (http://www.dr1.com/index.html#5)