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View Full Version : License plate hike dropped



NewsWhore
08-24-2007, 03:00 PM
President Leonel Fernandez has instructed Treasury Minister Vicente Bengoa and Tax Department director Juan Hernandez to suspend the application of new rates for license plate renewals on the grounds that Dominicans should not be burdened with more taxes. Fernandez says that he will submit a bill to Congress to modify Article 9 of Law 241-67 on Motor Vehicle Transit, which establishes the license plate taxes for vehicles. The government apparently now recognizes that only Congress can decide on new taxes. The increases had been disputed by the very influential passenger transport and cargo transport associations who refused to pay the new rates.
Transport union leaders Juan Hubieres of Fenatrano and Ramon Perez Figuereo of CNTU welcomed the President's decision, while commenting that the move was more to do with pre-electoral campaigning than genuine social policy. Earlier this week a Hoy-Gallup poll revealed that large percentage of Dominicans are unhappy with Fernandez's recent performance.
Diario Libre says that Dominicans will welcome the decision, while observing that it reveals that the government is improvising. "The same day, after distributing thousands of copies of a booklet explaining the new taxes, the government revokes the measure," writes the editorial. "It is impossible to separate the measure from President Fernandez's re-election efforts, but it is matter of concern that so many risky stances are being taken for the sake of the President's image of discipline, in a single week, during which the surprises have come one after another. The measure, without doubt, will be well received, but the possible interpretations make us worry," states the newspaper.
The government also announced that it would not allow insurance companies to apply the 30% increase on semi and full coverage vehicular insurance policies. The position of the insurance companies is that the government only regulates the price of the basic legal insurance

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