SANTO DOMINGO.- The business sector and economists oppose a new tax reform, and prefer an adjustment on Government spending, though Hacienda minister Vicente Bengoa yesterday denied the creation of new taxes in 2009, nor modifying those in effect.

He affirmed that the topic wasn’t dealt with during the International Monetary Fund (IMF) delegation’s recent visit to the country.

He said the Government will pay the power companies US$50 million this week, and Wednesday could submit to Congress the bill on the Budget, of RD$329 billion.

Bengoa said it would be counter-productive to increase taxes if 2009 is expected to be a recessive year, whereas the Presidency’s minister Cesar Pina Toribio said the Executive Branch’s latest actions don’t point to a tax reform at least no for next year.

The Industries Association (AIRD), and the Young Industrialists (ANJE), as well as  the economists Arturo Martinez Moya and Hugo Rivera agree that any adjustment has to start with government spending.

AIRD president Manuel Diez Cabral said the monetary policy has shown a "forced stability" that has damaged the productive sector, punishing exports and increasing interest rates, which adds to the difficulties of access to financing, but Dominicans must solve the country’s problems.