NewsWhore
11-16-2006, 01:50 PM
Although the President and his economic team have stood firmly behind the fiscal "rectification," the National Business Council (CONEP) and 34 other organizations have rejected the reform, going as far as to take out full page ads in leading daily newspapers today. In the ads, the 35 business associations express their opposition to the tax increases proposed by President Leonel Fernandez in his speech on Tuesday, 14 November.
The business sector's stance continues to be that new taxes are not necessary "if the authorities concentrate on improving their management of current tax revenues, rationalizing spending and focusing subsidies. They propose that by keeping 2007 at a spending level similar to 2006, increasing collections on power supplied, limiting subsidies on propane gas and electricity, applying the Government Procurement Law, implementing the new Tax Department (DGII) billing system, and with the increase in revenues as a consequence of the growth in the economy, the government can achieve the balance it needs in order to meet its commitments with the IMF without harming productive activities or sacrificing social spending.
The associations say that extending the list of items subject to ITBIS (VAT) was eliminated in the 2005 tax reform, but they remind the government that this was compensated for by other taxes that were added. "This scenario leads us to a regression in the road started to achieve a tax structure that stimulates competitiveness with DR-CAFTA soon to be implemented, and a commercial opening that is increasing every day," state the business groups.
They express concern that the government is failing to undertake a critical attitude and fulfill the need for more rationality and quality of spending as a key element.
"The business sector understands the President's motivations but does not agree with his proposal, considering that it is the time to apply corrections to achieve a more efficient and austere government, that is capable of providing services in return for the taxes paid by the public, and not adding and increasing taxes that discourage production," conclude the business groups.
More... (http://www.dr1.com/index.html#2)
The business sector's stance continues to be that new taxes are not necessary "if the authorities concentrate on improving their management of current tax revenues, rationalizing spending and focusing subsidies. They propose that by keeping 2007 at a spending level similar to 2006, increasing collections on power supplied, limiting subsidies on propane gas and electricity, applying the Government Procurement Law, implementing the new Tax Department (DGII) billing system, and with the increase in revenues as a consequence of the growth in the economy, the government can achieve the balance it needs in order to meet its commitments with the IMF without harming productive activities or sacrificing social spending.
The associations say that extending the list of items subject to ITBIS (VAT) was eliminated in the 2005 tax reform, but they remind the government that this was compensated for by other taxes that were added. "This scenario leads us to a regression in the road started to achieve a tax structure that stimulates competitiveness with DR-CAFTA soon to be implemented, and a commercial opening that is increasing every day," state the business groups.
They express concern that the government is failing to undertake a critical attitude and fulfill the need for more rationality and quality of spending as a key element.
"The business sector understands the President's motivations but does not agree with his proposal, considering that it is the time to apply corrections to achieve a more efficient and austere government, that is capable of providing services in return for the taxes paid by the public, and not adding and increasing taxes that discourage production," conclude the business groups.
More... (http://www.dr1.com/index.html#2)