NewsWhore
12-05-2006, 05:20 PM
As a result of what President Leonel Fernandez described as an unusual "collective intelligence" exercise, the statesman revoked several of the tax increases he had proposed in November and announced that he would be sending a proposal with a greater focus on cutting superfluous government spending and increasing tax collection efficiency to Congress. The original proposal presented to the nation on 14 November had met with widespread rejection and an almost unanimous call for the government to cut its own spending. The President reversed his original decision to impose a 16% ITBIS (VAT) rate on sugar, oil, coffee, butter or milk and eliminate this year's reduction of income tax. The President's new counterproposal includes taxing gaming, betting, alcohol and tobacco products, and increasing the tax on license plate renewals. The President also revoked the proposed additional 5% tax on hotel rooms and an increase in the IVSS tax on property, but announced that the government would seek increased transparency in payment of taxes on all-inclusive vacation packages. The government also seeks to increase the number of taxpayers by introducing greater penalties for evading payment, as well as a simple ITBIS (VAT) plan to get more small businesses to pay taxes.
In addition, Fernandez announced his nine-point plan for cutting government spending. He announced salary cuts for government officers, a ban on government and decentralized government institution financing plans for the purchase of vehicles and vehicle exonerations. The pay cut consists of a 10% cut on salaries of RD$125,000 and upwards, a 5% cut on those making RD$100,000 and a 3% cut for government employees who earn more than RD$50,000. He also accepted to limit Dominican government delegations traveling abroad to five members, and to control cell phone use and expense accounts for government officials.
The President announced in the speech last night that his office seeks a RD$254.68 billion budget. Of that sum, RD$209.77 billion will come from taxes and RD$46.24 billion will come from financing. The budget is broken down as follows: RD$65.37 billion will go towards paying the public debt, RD$42.07 billion towards paying salaries, RD$31.44 billion for goods and services, RD$65.19 billion towards transfers and subsidies, and RD$50.99 billion on capital expenditures.
The tax reform and budget is being sent to Congress for approval today.
More... (http://www.dr1.com/index.html#1)
In addition, Fernandez announced his nine-point plan for cutting government spending. He announced salary cuts for government officers, a ban on government and decentralized government institution financing plans for the purchase of vehicles and vehicle exonerations. The pay cut consists of a 10% cut on salaries of RD$125,000 and upwards, a 5% cut on those making RD$100,000 and a 3% cut for government employees who earn more than RD$50,000. He also accepted to limit Dominican government delegations traveling abroad to five members, and to control cell phone use and expense accounts for government officials.
The President announced in the speech last night that his office seeks a RD$254.68 billion budget. Of that sum, RD$209.77 billion will come from taxes and RD$46.24 billion will come from financing. The budget is broken down as follows: RD$65.37 billion will go towards paying the public debt, RD$42.07 billion towards paying salaries, RD$31.44 billion for goods and services, RD$65.19 billion towards transfers and subsidies, and RD$50.99 billion on capital expenditures.
The tax reform and budget is being sent to Congress for approval today.
More... (http://www.dr1.com/index.html#1)