NewsWhore
08-02-2010, 02:50 PM
The National Association of Hotels & Restaurants (Asonahores) joined business organizations that have been vocal in opposing the proposed increases in taxation and revoking of business incentives.
The government is running at an increasing deficit and is once more looking to the business sector and the middle class to fund the difference. Business organizations say the government should cut its own excessive spending.
Asonahores president Haydee Kuret de Rainieri said that if Congress approved the so- called "bill for the rationalizing of taxes" proposed by the government they would be approving the annihilation of the country as a tourism destination. She said that while the Hacienda Ministry claims that the bill does not eliminate the incentives, it proposes discretional powers and a super-vote of government officials.
She adds that this means it is up to the Ministry of Hacienda to determine who qualifies for the fiscal incentives and if after that no objection is granted, then the ministries of Tourism, Environment and Culture also get to decide whether to grant this or not.
Rainieri complained that the other proposed bill that unifies the management, collection and monitoring of selective taxes on luxury items would be applied to petrol. She complained that this will raise electricity costs and avtur will cost even more. She said this bill is very poorly timed in these days of tough international competition that impedes companies from passing on the difference to the consumer.
As reported in Diario Libre, she said that avtur, at US$2.84/gallon in the DR, is already above the world average of US$2.01/gallon and the average for the Caribbean that is US$2.095/gallon.
Rainieri says that in its calculations, the state fails to take into consideration the US$50 that every tourist pays in taxes to the government.
Manolo Ramirez, representative of the hotel workers association, said the measure would result in fewer jobs in tourism.
Juan Bancalari of the Dominican Association of Real Estate Companies (ADETI) concurred that the bill would definitely affect tourism industry competitiveness.
More... (http://www.dr1.com/index.html#5)
The government is running at an increasing deficit and is once more looking to the business sector and the middle class to fund the difference. Business organizations say the government should cut its own excessive spending.
Asonahores president Haydee Kuret de Rainieri said that if Congress approved the so- called "bill for the rationalizing of taxes" proposed by the government they would be approving the annihilation of the country as a tourism destination. She said that while the Hacienda Ministry claims that the bill does not eliminate the incentives, it proposes discretional powers and a super-vote of government officials.
She adds that this means it is up to the Ministry of Hacienda to determine who qualifies for the fiscal incentives and if after that no objection is granted, then the ministries of Tourism, Environment and Culture also get to decide whether to grant this or not.
Rainieri complained that the other proposed bill that unifies the management, collection and monitoring of selective taxes on luxury items would be applied to petrol. She complained that this will raise electricity costs and avtur will cost even more. She said this bill is very poorly timed in these days of tough international competition that impedes companies from passing on the difference to the consumer.
As reported in Diario Libre, she said that avtur, at US$2.84/gallon in the DR, is already above the world average of US$2.01/gallon and the average for the Caribbean that is US$2.095/gallon.
Rainieri says that in its calculations, the state fails to take into consideration the US$50 that every tourist pays in taxes to the government.
Manolo Ramirez, representative of the hotel workers association, said the measure would result in fewer jobs in tourism.
Juan Bancalari of the Dominican Association of Real Estate Companies (ADETI) concurred that the bill would definitely affect tourism industry competitiveness.
More... (http://www.dr1.com/index.html#5)