NewsWhore
11-28-2006, 05:30 PM
The latest on the fiscal reform is that President Fernandez has decided not to levy ITBIS tax on seven basic products - coffee, sugar, butter, margarine, chocolate, cooking oil and yoghurt. To compensate for not taxing certain food products, the government is contemplating increasing customs taxes on vehicles, plus increased taxation on premium and regular gasoline and diesel fuel, it has been reported. Finance Minister has rejected the private sector's position that by cutting government spending, the government would not need to increase taxes.
Listin Diario is reporting the possibility that the government could lower the salary of high-ranking government employees, including the President, as part of its austerity plan. The newspaper cites sources that say the cuts would be between 25% and 30% of existing salaries and would include ministers, deputy ministers and department heads. Ministers earn RD$70,000 per month while their deputies get RD$60,000. The announcement of the possible salary reduction comes as part of the promise made by Leonel Fernandez during his speech specifying details about the fiscal reform, in which he said that alongside the increase in certain taxes the government would embark on an austerity program. The government needs to find sources for a missing RD$35 billion to balance its 2007 National Budget within financial framework provided under the International Monetary Fund stand by agreement. It has proposed undetailed spending cuts for RD$17 billion, but is proposing new taxes to source the deficit.
More... (http://www.dr1.com/index.html#5)
Listin Diario is reporting the possibility that the government could lower the salary of high-ranking government employees, including the President, as part of its austerity plan. The newspaper cites sources that say the cuts would be between 25% and 30% of existing salaries and would include ministers, deputy ministers and department heads. Ministers earn RD$70,000 per month while their deputies get RD$60,000. The announcement of the possible salary reduction comes as part of the promise made by Leonel Fernandez during his speech specifying details about the fiscal reform, in which he said that alongside the increase in certain taxes the government would embark on an austerity program. The government needs to find sources for a missing RD$35 billion to balance its 2007 National Budget within financial framework provided under the International Monetary Fund stand by agreement. It has proposed undetailed spending cuts for RD$17 billion, but is proposing new taxes to source the deficit.
More... (http://www.dr1.com/index.html#5)