NewsWhore
06-15-2011, 03:30 PM
A selective consumer tax of 1.5 per thousand on cash withdrawals from bank counters, excluding ATMs, was one of the options presented by the National Business Council (CONEP) in its appearance before the joint commission that is studying the fiscal proposals that the President has submitted to the National Congress. This tax would be gradually reduced until 2013, until it reached zero. The government would collect approximately RD$1.825 billion, which according to Conep would have a positive effect on the economy. According to Diario Libre, business leaders believe that this would discourage cash transactions, and would increase transparency and formality among the users of the financial system, leading to a significant reduction in the costs involved in handling cash for the banks.
They also proposed an increase in income tax for legal entities, from 25% to 26%, with a gradual removal also until 2013, alleging that with this increase, the state would garner an additional RD$856 million.
The business representatives also proposed an increase from 12% to 14% on the savings projected by the government in its expenditures in 2011, which would represent additional savings of RD$2.85 billion. Moreover they suggest that the government should implement a greater austerity on total public spending in order to obtain sufficient resources to cover the fiscal deficit. Conep suggested that the government negotiate with the International Monetary Fund for an increase in the debt limit for 2011, in exchange for ending the agreement in December 2011, instead of in February 2012. The business leaders believe that this would ensure that macro-economic stability is maintained, along with continuity in state projects and the rationalization of expenditure. Conep believe that the 10% tax on dividends, with which they project to collect RD$2.825 billion, needs to be replaced, since according to their explanations, it does not permit compensation through the retention of income taxes from the shareholders on the income tax of the companies: it reduces business competitiveness and in some cases seriously compromises the viability or feasibility of a company as it taxes one source of money with two taxes.
More... (http://www.dr1.com/index.html#4)
They also proposed an increase in income tax for legal entities, from 25% to 26%, with a gradual removal also until 2013, alleging that with this increase, the state would garner an additional RD$856 million.
The business representatives also proposed an increase from 12% to 14% on the savings projected by the government in its expenditures in 2011, which would represent additional savings of RD$2.85 billion. Moreover they suggest that the government should implement a greater austerity on total public spending in order to obtain sufficient resources to cover the fiscal deficit. Conep suggested that the government negotiate with the International Monetary Fund for an increase in the debt limit for 2011, in exchange for ending the agreement in December 2011, instead of in February 2012. The business leaders believe that this would ensure that macro-economic stability is maintained, along with continuity in state projects and the rationalization of expenditure. Conep believe that the 10% tax on dividends, with which they project to collect RD$2.825 billion, needs to be replaced, since according to their explanations, it does not permit compensation through the retention of income taxes from the shareholders on the income tax of the companies: it reduces business competitiveness and in some cases seriously compromises the viability or feasibility of a company as it taxes one source of money with two taxes.
More... (http://www.dr1.com/index.html#4)