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View Full Version : Government stalls on subsidy withdrawal



NewsWhore
09-05-2012, 02:00 PM
The Medina administration has come up against many obstacles during its initial stages. One of the easiest to resolve was the transport unions' demand for a diesel fuel subsidy. They will now get their "duty free" fuel until December at least. The transport unions said that they would step back from their aggressive stance and give the government a chance. El Nuevo Diario reports that the Minister of Industry and Commerce, Jose del Castillo Savinon, reminded the "union" leaders that the government was committed to reducing the fiscal deficit of more than RD$90 billion, and one of the steps is to eliminate the fuel subsidies to the transporters. This three-month delay is aimed at preventing fare and freight rate increases that had been announced by the transporters. Minister del Castillo stated that as soon as the fiscal reform (the tax reform) is approved, this measure could be withdrawn. The transporters argue that the government awards fuel subsidies to big industry.

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