CONEP: No new taxes

[NewsWhore]

The National Council of Business (CONEP) suggests that instead of imposing new and higher taxes on the people and businesses, a government austerity policy might well serve the same purpose. She urged that the government act with "caution" when imposing new tax measures in order to finance the recapitalization of the Central Bank. The organization criticized the idea of a new internal bond issue to secure funding for the bank. El Caribe reports that CONEP's rejection of the measures suggested by the Presidential economic team rests in the fact that small and medium sized businesses have been already penalized by three tax reforms over the last three years. CONEP reminded the government that the 2004, 2004 and 2005 reforms were carried out precisely in order to solve the problem of the quasi-fiscal deficit facing the Central Bank for which the government is calling for another tax increase. This deficit is represented by the amount of money needed to pay the interest on the certificates of deposit the bank issued in order to reduce the circulation of all the money used to rescue BanInter and other depositors in the crisis of 2003. According to CONEP, "this policy of austerity and rational public spending will also contribute, moreover, to the fulfillment of the objectives of the agreement that we have with the IMF." And so, CONEP joins the National Association of Young Entrepreneurs (ANJE) in asking the government to reduce spending.

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