NewsWhore
11-30-2007, 03:50 PM
Young Entrepreneurs Association (ANJE) president Joel Santos feels that the government shouldn't subsidize the fuel used by transporters because this just creates another distortion in the fuel market. Santos, quoted in Hoy, says he understands the current situation with international fuel prices, but says that the government is in no position to provide a subsidy. He points out that the government already subsidizes propane gas (LPG) sales. He said that if the government wanted to really make an impact it would convert part of the selective tax into an ITBIS (VAT) tax and would take on a more active role as a regulator in the market. Santos also challenged the government to make extensive cutbacks to its own unnecessary costs and spending.
Meanwhile the National Gasoline Retailer's Association (ANADEGAS) says that previous subsidies have created an illegal market and that this latest subsidy will only exacerbate the situation.
ANADEGAS head Juan Ignacio Espaillat said that instead of subsidizing the sector, the government should impose a limit on the amount of fuel consumed. He said that this would prevent a distortion in the sale of fuels as well as controlling tax evasion.
However, a report in Listin Diario quotes Industry and Commerce Minister Melanio Paredes as saying that the fuel market will not be distorted by the subsidy because the part that will benefit the drivers only amounts to 5% of demand.
More... (http://www.dr1.com/index.html#2)
Meanwhile the National Gasoline Retailer's Association (ANADEGAS) says that previous subsidies have created an illegal market and that this latest subsidy will only exacerbate the situation.
ANADEGAS head Juan Ignacio Espaillat said that instead of subsidizing the sector, the government should impose a limit on the amount of fuel consumed. He said that this would prevent a distortion in the sale of fuels as well as controlling tax evasion.
However, a report in Listin Diario quotes Industry and Commerce Minister Melanio Paredes as saying that the fuel market will not be distorted by the subsidy because the part that will benefit the drivers only amounts to 5% of demand.
More... (http://www.dr1.com/index.html#2)