SANTO DOMINGO.- The Economy Minister today warned that Dominican Republic’s economic stability would be at risk if the plan to “index” the fuel tax revenue isn’t implemented.
The statement from Temístocles Montas is the latest in an uproar caused by earlier comments by Treasury minister Vicente Bengoa that it’s not a tax and instead an “indexation” of the current levy.
Montas however said he’s aware that the increase would affect the population. “Of course, because the value of the tax today doesn’t correspond with the inflationary situation that the country has been going through during the last few years."
He noted that the plan is contained in the Hydrocarbon Law approved during the Hipolito Mejia Administration (2000-2224) of the opposition PRD party. ”That law passed by the PRD establishes the periodical readjustment of fuel prices, and that’s what’s being done today."
The official, asked about the general rejection the announcement has sparked, denied that it’s a Government effort to charge new taxes. “It’s a lack of communication, the measure should’ve been first explained to the business sector.”
Written by: xwill7, 27 Jul 2010 4:06 PM
From: United States, El cuarto bate
The tire burning guys will be out soon
From: Dominican Republic, vieja Santo Domingo
We have a strange thing in that juanb is all in favour of the tax hikes proposed by his government and the rest of the country is not ,,for me I prefer to abandon all further conferences, have all politicians and officials fly economy and have all politicians pay for their own fuel . reduce the number of embassies and reduce all pensions to former staff who have been dismissed ..that will save millions
From: Dominican Republic, vieja Santo Domingo
Next idea is to actually collect the taxes that are legally owing ..property tax, the direct tax and income and company tax ,,we will have a rich country then and reduced petrol prices can be competitive with the rest of Latin America
From: United States
Tax increase, how much more do they want to go. A single gallon of gasoline in DR is costing more than $4.21 us dollars, I feel bad for the poor that live there who only make RD9,000 peso a month. Stupid politics just look for their own good.
Written by: xwill7, 27 Jul 2010 5:17 PM
From: United States, El cuarto bate
sunshinestate,
The average Dominican does not use gasoline, they run their cars on propane
Written by: anthonyC, 27 Jul 2010 6:43 PM
From: United States
Dominicans complaining about fuel prices and taxes is the ultimate in hypocrisy.
Written by: juanb, 27 Jul 2010 6:58 PM
From: Dominican Republic
Littledick:
You must be a big fan of Fox News. You twist and misrepresent everything to suit your agenda.
For the record:
I am against tax increases, tax adjustments and new taxes.
The fact that we have put ourselves on the border of financial collapse thanks to the borrowing that I am also against ( and that you support) means that we have to do something. Since the government that you support so emphatically has stolen, wasted and misspent so much of our tax monies we have to find some way to pay. I say cut the salaries of all these "gobernistas", stop the stealing of public officials, and put us on the road to financial soundness. What's that? None of those proposals will ever come into effect? Then what would you suggest? Stop paying our loans so that no one will extend us credit? By the way, yesterday the legislature appoved another 182,000,000US in loans.
If you honestly think that any of your proposals will come to fruition, you are dumber than I originally thought
Written by: juanb, 27 Jul 2010 7:07 PM
From: Dominican Republic
As long as they can get away with things like this, nothing will ever change:
The Supervisory Engineering Office of the Presidency (OISOE) began a project to modernize the main campus of the state UASD university with the construction of five major facilities in 2005. Hoy reports that despite these should have been finished in 2007, 5 years later, the construction is advancing at turtle pace and there is no finishing date in the horizon.
The USAD project, initially estimated to cost RD$2.5 billion, would have been financed by the US$130 million contract the director of the OISOE Felix Bautista signed on behalf of the government, without the approval of the Congress.No one has information on the status of the project, says Hoy. Architect Juan Ramon Fiallo, a member of the Commission for Modernization and Preservation of the Campus at the UASD said: "The government assumed the project from its start and has not given us any kind of information."
Where did that money go?
Written by: juanb, 27 Jul 2010 7:12 PM
From: Dominican Republic
Remember this:
When a government pays out more than 40% of its income to service its debt, there is never enough to provide even basic services. Add to that the theft and corruption and nothing would get done without loans. The people would never stand for lowering the already horribly low levels of services. The schools suck. The roads are dangerous. The crime rate is growing exponentially. Our Police are horribly underpaid. And all the people see are "gobernistas" living the high life. This government's motto has always been, "I will gladly pay you Thursday for a hamburger today", regardless of the price on Thursday.
From: Dominican Republic, vieja Santo Domingo
It is quite strange that all the minus queens here have given a minus to my suggestion that rich people and wealthy companies should actually pay the amount they are legally obliged to pay . At present a large amount of taxes that are owed are not paid . I am surprised that the minus queens want that sort of cheating to continue ...well ,maybe not that surprised.
From: Dominican Republic, vieja Santo Domingo
juanb it must be a nightmare for you living in the Dominican Republic ...and to think that the new government has only just been elected and Leonel may serve another term.
From: United States
actually, Ricardolito, that is why i am splitting. there is no hope. my buddies are packing, as we speak. the place is beyond a joke. with all its potential, it is going nowhere. but, i am. out.
Written by: juanb, 27 Jul 2010 9:58 PM
From: Dominican Republic
You get "minused" because we realize that although the things you suggest make sense, we realize that they will NEVER happen.
Let me tell you a story:
Years ago the government would send an accountant into the casinos to determine how much profit they made so that they could be taxed accordingly. The casino owners bribed the accountants and underpaid all their taxes.
Today they are charged per table. Are you so naïve as to believe that it is any different now.
And yes, the thought of more of rthe same type of government disgusts me, but I will continue to work for change.
From: United States
actually, juanb, there was no need to send an accountant. they could have sent a circus monkey, and gotten the same result. money passes, stuff happens. or, does not happen.
From: United States
juanb, i am a cynical sort, and i have concluded that in the DR, as in many other third world countries, politics is the home of useless, baseless, incompetent, bungling, amoral fringe criminals. the guys with no talents get into politics, because they cannot do anything else. so, you get countries run by incompetent thieves. nothing more, nothing less.
Written by: juanb, 27 Jul 2010 11:21 PM
From: Dominican Republic
Dread;
You could not be more correct.
Written by: DomRat, 28 Jul 2010 11:38 AM
From: Dominican Republic
O K who is responsible for the inflation that robs all savers and aids borrowers buy reducing the value of what they repay (if and when). If the Government halts inflation then they cure their own problem. The peso should be appreciating against the dollar not declining.
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The average Dominican does not use gasoline, they run their cars on propane
Dominicans complaining about fuel prices and taxes is the ultimate in hypocrisy.
You must be a big fan of Fox News. You twist and misrepresent everything to suit your agenda.
For the record:
I am against tax increases, tax adjustments and new taxes.
The fact that we have put ourselves on the border of financial collapse thanks to the borrowing that I am also against ( and that you support) means that we have to do something. Since the government that you support so emphatically has stolen, wasted and misspent so much of our tax monies we have to find some way to pay. I say cut the salaries of all these "gobernistas", stop the stealing of public officials, and put us on the road to financial soundness. What's that? None of those proposals will ever come into effect? Then what would you suggest? Stop paying our loans so that no one will extend us credit? By the way, yesterday the legislature appoved another 182,000,000US in loans.
If you honestly think that any of your proposals will come to fruition, you are dumber than I originally thought
The Supervisory Engineering Office of the Presidency (OISOE) began a project to modernize the main campus of the state UASD university with the construction of five major facilities in 2005. Hoy reports that despite these should have been finished in 2007, 5 years later, the construction is advancing at turtle pace and there is no finishing date in the horizon.
The USAD project, initially estimated to cost RD$2.5 billion, would have been financed by the US$130 million contract the director of the OISOE Felix Bautista signed on behalf of the government, without the approval of the Congress.No one has information on the status of the project, says Hoy. Architect Juan Ramon Fiallo, a member of the Commission for Modernization and Preservation of the Campus at the UASD said: "The government assumed the project from its start and has not given us any kind of information."
Where did that money go?
When a government pays out more than 40% of its income to service its debt, there is never enough to provide even basic services. Add to that the theft and corruption and nothing would get done without loans. The people would never stand for lowering the already horribly low levels of services. The schools suck. The roads are dangerous. The crime rate is growing exponentially. Our Police are horribly underpaid. And all the people see are "gobernistas" living the high life. This government's motto has always been, "I will gladly pay you Thursday for a hamburger today", regardless of the price on Thursday.
Let me tell you a story:
Years ago the government would send an accountant into the casinos to determine how much profit they made so that they could be taxed accordingly. The casino owners bribed the accountants and underpaid all their taxes.
Today they are charged per table. Are you so naïve as to believe that it is any different now.
And yes, the thought of more of rthe same type of government disgusts me, but I will continue to work for change.
You could not be more correct.