NewsWhore
12-14-2006, 03:10 PM
Finance Minister Vicente Bengoa has responded to criticism from the business sector by saying that the sector is only in favor of reforms when taxes are taken away from them. Bengoa said that there would be no new taxes for the free trade zones or the tourist sector as a way of maintaining their competitive advantages as the country enters DR-CAFTA. Bengoa is responding to concerns and misunderstandings about the issue, which have caused a firestorm when it appeared that the government was to remove the exemptions. Bengoa, speaking in Hoy newspaper, said that if you read the proposed reform it doesn't say that exemptions will be removed but that new FTZs will not be allowed those exemptions. Bengoa says that the exemptions could not continue because they go against DR-CAFTA requirements. He added that if the DR-CAFTA signatory countries engage in an incentive war for FTZs it would damage the foundation of the free trade agreement. Furthermore, Bengoa challenged the business sector to show how the fiscal reform would actually affect business and said that in turn it is the consumer who will be affected.
Vice President Rafael Alburquerque chimed in by saying that he would need proof of the assertion that the government is collecting RD$7.5 billion more than was proposed with the fiscal reform. Alburquerque said that the government will strongly consider retaining the incentives for the FTZs but did warn however that because of that the government might not be able to collect the total RD$17.5 billion they need for 2007.
Senate leader Reinaldo Pared Perez commented that the fiscal reform is the only way to maintain the country's macro-economic stability and that the reform would still go through even if some of the country's sectors aren't in agreement with it. Pared Perez, speaking in Diario Libre, said that he prefers businesses to be taxed rather than the public.
The vehicular and casino sectors are also expressing opinions on the issue. Luis Manuel Mejia, representing the National Association of Vehicle Importers (ANADIVE) oppose the reform. Edmond Elias, speaking for the Association of Casinos, said that five casinos, the San Geronimo, Naco, Playa Dorada, D'Cameron and Napolitano have all closed down due to taxes. He continued by saying that if this continues, the government will not be able to collect the necessary funds, and that this in turn would damage the tourist sector. Tourism Minister Felix Jimenez said that he has given President Leonel Fernandez a proposal for the modification of law 158, on incentives that favor all-inclusive tourist vacations. The modification would favor potential tourist destinations, as opposed to areas that are already tourist destinations.
More... (http://www.dr1.com/index.html#4)
Vice President Rafael Alburquerque chimed in by saying that he would need proof of the assertion that the government is collecting RD$7.5 billion more than was proposed with the fiscal reform. Alburquerque said that the government will strongly consider retaining the incentives for the FTZs but did warn however that because of that the government might not be able to collect the total RD$17.5 billion they need for 2007.
Senate leader Reinaldo Pared Perez commented that the fiscal reform is the only way to maintain the country's macro-economic stability and that the reform would still go through even if some of the country's sectors aren't in agreement with it. Pared Perez, speaking in Diario Libre, said that he prefers businesses to be taxed rather than the public.
The vehicular and casino sectors are also expressing opinions on the issue. Luis Manuel Mejia, representing the National Association of Vehicle Importers (ANADIVE) oppose the reform. Edmond Elias, speaking for the Association of Casinos, said that five casinos, the San Geronimo, Naco, Playa Dorada, D'Cameron and Napolitano have all closed down due to taxes. He continued by saying that if this continues, the government will not be able to collect the necessary funds, and that this in turn would damage the tourist sector. Tourism Minister Felix Jimenez said that he has given President Leonel Fernandez a proposal for the modification of law 158, on incentives that favor all-inclusive tourist vacations. The modification would favor potential tourist destinations, as opposed to areas that are already tourist destinations.
More... (http://www.dr1.com/index.html#4)