NewsWhore
10-26-2006, 03:20 PM
The Dominican Republic Industrial Association (AIRD) and the National Association of Young Entrepreneurs (ANJE) have been angered by the proposed tax reform announced yesterday by Technical Secretary to the President Temistocles Montas, and are proposing that the government analyze the destination of its expenditures to make the administration of resources it receives more efficient. Diario Libre reports that AIRD president Yandra Portela Vila and Eduardo Valcarcel, president of ANJE, are in agreement that the government must implement an austerity plan to reduce expenditure before embarking on a new tax reform. Excessive subsidies must be eliminated and the austerity plan announced at the beginning of the administration must be put into effect, said the business leaders. Industries need to improve their competitiveness conditions for free trade, and that is affected by the creation or increase of taxes.
The stir comes after it was announced yesterday, from Washington, that the government would introduce a tax reform in the next few weeks, and push it through Congress so that it can be included in the 2007 budget. Montas defended the possible reform by saying that it would bring the DR in line with the stipulations of the IMF Stand-by agreement, and would enable it to deal with the "profound" changes that will be brought on by the implementation of DR-CAFTA. Montas also pointed out that President Leonel Fernandez told IMF Chairman Rodrigo Rato that because last year's Congress did not ratify the government's tax reform proposals as they were presented, there was a RD$7 billion reduction in tax collection, and this was going to have to be "rectified." The proposed tax reform is likely to include increases in ITBIS (VAT) on items like coffee, sugar, cooking oil and fuel. Also there is to be a change and increase in the selective tax on alcoholic beverages and cigarettes, and a tax on personal savings. Finance Minister Vicente Bengoa said that he is leaning towards raising ITBIS. The way the reform will be carried out has yet to be decided.
More... (http://www.dr1.com/index.html#5)
The stir comes after it was announced yesterday, from Washington, that the government would introduce a tax reform in the next few weeks, and push it through Congress so that it can be included in the 2007 budget. Montas defended the possible reform by saying that it would bring the DR in line with the stipulations of the IMF Stand-by agreement, and would enable it to deal with the "profound" changes that will be brought on by the implementation of DR-CAFTA. Montas also pointed out that President Leonel Fernandez told IMF Chairman Rodrigo Rato that because last year's Congress did not ratify the government's tax reform proposals as they were presented, there was a RD$7 billion reduction in tax collection, and this was going to have to be "rectified." The proposed tax reform is likely to include increases in ITBIS (VAT) on items like coffee, sugar, cooking oil and fuel. Also there is to be a change and increase in the selective tax on alcoholic beverages and cigarettes, and a tax on personal savings. Finance Minister Vicente Bengoa said that he is leaning towards raising ITBIS. The way the reform will be carried out has yet to be decided.
More... (http://www.dr1.com/index.html#5)