NewsWhore
08-26-2010, 04:30 PM
Several economists are warning that the decision to maintain the application of ITBIS tax on raw materials in Customs is "wrong." The government chose this course to meet demands imposed by the International Monetary Fund. The IMF team was in Santo Domingo this month for the second and third review of the Stand-by Arrangement in effect since November 2009. As reported in El Dia, the economists said the decision would affect local business competitiveness, leading to price increases and job losses.
Henri Hebrard, Fernando Alvarez Bogaert and Bernardo Fuentes said the measure would not generate new revenues for the government. On the contrary, they said it would lead to distrust from potential investors.
"The IMF is acting with a short-term vision with this imposition and is inducing us to make mistakes. The payment of this tax is going to artificially increase Customs revenues but it is possible that they will decline in the long term", Hebrard said at the end of a brainstorming session on the IMF comments. Fuentes said that the approval of the ProIndustry Law that called for the tax to be applied on sales and not in Customs had been the result of great efforts by the government and the industrial sector.
Economists have said that the IMF only requires the government to reduce its deficit, and it is up to the government how this is done. The Fernandez government has continued to add to what is deemed as wasteful spending and continuing appointment of not needed government employees.
More... (http://www.dr1.com/index.html#3)
Henri Hebrard, Fernando Alvarez Bogaert and Bernardo Fuentes said the measure would not generate new revenues for the government. On the contrary, they said it would lead to distrust from potential investors.
"The IMF is acting with a short-term vision with this imposition and is inducing us to make mistakes. The payment of this tax is going to artificially increase Customs revenues but it is possible that they will decline in the long term", Hebrard said at the end of a brainstorming session on the IMF comments. Fuentes said that the approval of the ProIndustry Law that called for the tax to be applied on sales and not in Customs had been the result of great efforts by the government and the industrial sector.
Economists have said that the IMF only requires the government to reduce its deficit, and it is up to the government how this is done. The Fernandez government has continued to add to what is deemed as wasteful spending and continuing appointment of not needed government employees.
More... (http://www.dr1.com/index.html#3)