SANTO DOMINGO. – Bowing to mounting pressure from political parties, business groups and other sectors, the Government announced on Thursday that it will seek a consensus a bill which would add a 9 peso tax to fuels and eliminate tax breaks.
Economy minister Temístocles and Treasury minister Vicente Bengoa affirmed that the dialogue will be tabled "with the sectors which have to do with the topic."
In that regard president Leonel Fernandez will meet with business leaders in the National Palace on Monday to explain the reaches of the new tax bills which have already been submitted to Congress.
They said the Government’s Economic Team will participate In the meeting in an unspecified hour, but didn’t set a date for the gathering with the other national sectors.
Bengoa, speaking with reporters prior to an activity to release a book by the Economy Ministry, stressed that the bills aren’t equivalent to a new tax reform and instead an application of Law 122-00 on fuels. “We as Minister of the Treasury must explain to the business leaders who have some doubts on the legislation, now what it has been clarified that there are no taxes in the bills."
He said they would ask the business leaders to explain how those bills would affect the Dominican industries’ competitiveness.
Political parties, professional guilds, retail and industrial associations and unions have asked the Government to discard the indexing of the fuels and the elimination of the tax incentives, alleging that they will contribute to decelerate the economy.
From: Dominican Republic, vieja Santo Domingo
Thank goodness they are sensible enough to listen to what everyone has been saying ..the indexation is plain crazy
From: United States
They were afraid of the truckers union in principle because it is the most radical.
Written by: juanb, 29 Jul 2010 2:21 PM
From: Dominican Republic
Does anyone actually believe that this is the end of the story?
This only means that they will now have to find another way to tax us. The country is bankrupt, and if taxing us is the only way for the gobernistas to maintain their extravagant lifestyles, then tax us they will.
Written by: juanb, 29 Jul 2010 3:12 PM
From: Dominican Republic
Ass backwards, as usual:
President Leonel Fernandez has launched the construction of the Monte Grande Dam in the southwest. The dam is set to provide irrigation and drinking water for the provinces of Barahona, Independencia and Bahoruco. The dam that will channel the waters of the Yaque del Sur River has a construction budget of RD$270 million. The government awarded the construction to the Brazilian company, Andrade Gutierrez, with Brazilian financing included. The company previously built the Northwest Multiple Aqueduct.
Yesterday, President Leonel Fernandez sent the contract for the studies, design, construction and financing of Monte Grande and the rehabilitation of Sabana Grande dam to the Senate.
Seems to me that first you submit the plans, let the Senate advise, and then you start the bidding process. Oh, that's right. No bidding in the DR. "the government awarded"
Written by: juanb, 29 Jul 2010 3:14 PM
From: Dominican Republic
And now for the best part:
Morning radio talk show El Gobierno de la Manana speculated that the contract had been signed by the controversial Hector Rodriguez Pimentel, former director of the state waterworks department, INDRHI. Investigative TV journalist Alicia Ortega has revealed details of major corruption in his handling of dam projects when he was at INDRHI. Ortega presented evidence of a 1,200% overvaluation of the cost of the Monte Grande dam.
From: Dominican Republic, vieja Santo Domingo
This all should be in another article for posting ,,not here
Written by: jhcl2012, 29 Jul 2010 5:15 PM
From: United States
Well done by the goverment; now lets work together toward a solution to these issues.
Pero, please, no ITBIS by DGA!!! We must sell first to collect ITBIS and forward it to DGII...
Written by: juanb, 29 Jul 2010 5:29 PM
From: Dominican Republic
If petrol sales remain at the same levels, the indexing of petrol prices and a change in the Hydrocarbon Law would generate RD$4.5-RD$5 billion more in revenues for the government, as reported in El Dia. The last indexation was applied in April 2007, and taxes would have to increase 29% to catch up. Economist Henri Hebrard said this would mean RD$2 billion more in gasoline sales taxes. Diesel sales will bring in RD$2.5-RD$3 billion more in taxes. Hebrard said that the money would not be enough for the government to finance its first semester deficit, but would help avoid increasing the deficit in the second half.
I have said, many times before, we are broke. The government desperately needs funds. This would have raised taxes by FIVE BILLION PESOS, and it still would not have been enough. Remember Bengoa that POS said no new taxes. He forgot to mention raping us with increases, however. How are they going to raise this money now. Stay tuned for their next hornswaggle.
From: Dominican Republic, vieja Santo Domingo
" I have said many times before we are broke ", Now what exactly is your definition of broke ?? And what do YOU mean by indexation and why do people lend to us if we are broke ??
Maybe you mean that we are running a deficit , Maybe you mean that the current income is lower than the current expenditure . What exactly do you mean ??
Do you think that it is better to destroy the entire competitiveness of our industries just so the government can temporarily have more money in the bank ?? So you think that petrol sales will remain at the same level and that other taxes will remain the same and that it does not matter that every item you buy will rise by at least 15% and that we will have galloping inflation that will impact on every poor person ,
From: Dominican Republic, vieja Santo Domingo
Maybe there are other ways to skin the cat than the way juanb is so adamantly supporting .
From: Dominican Republic, vieja Santo Domingo
juanb ,,as is so often the case here , I believe this article here is only half correct ..it has been stated in DR1 that the government plans to eliminate the ITBIS and also luxury taxes in return for this indexation of fuel ..now if that is correct it is a horse of a very different colour .I cannot find the actual proposals anywhere in the papers but just the reaction to the changes .Can anyone say exactly what the changes are ?? I am not going to comment further until the facts are known .
Written by: anthonyC, 30 Jul 2010 10:31 AM
From: United States
The Domincans need to make a decision.
Do you want to keep on being a socialist economy and pay more taxes or do you want to embrace freedom?
Written by: OGNYC, 30 Jul 2010 12:35 PM
From: United States
As usual everyone is ignoring the real reason why the government needs extra funds. That is corruption, all the money spent on buying an election and all the money pocketed by this extremely corrupt government. This country is bankrupt; by bankrupt I mean that the monies allocated in the fake budget approved by the legislature for the countries expenses were used for paying no show positions for political cronies. This misappropriation of funds is the signature of this corrupt government. Since the legislative elections this corrupt president has tried numerous tactics to make up for his budget shortfall due to his corruption this is just the latest. Let's stop acting as if their is a simple fiscal fix for corruption no matter what you change the corruption of this government will defeat it.
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This only means that they will now have to find another way to tax us. The country is bankrupt, and if taxing us is the only way for the gobernistas to maintain their extravagant lifestyles, then tax us they will.
President Leonel Fernandez has launched the construction of the Monte Grande Dam in the southwest. The dam is set to provide irrigation and drinking water for the provinces of Barahona, Independencia and Bahoruco. The dam that will channel the waters of the Yaque del Sur River has a construction budget of RD$270 million. The government awarded the construction to the Brazilian company, Andrade Gutierrez, with Brazilian financing included. The company previously built the Northwest Multiple Aqueduct.
Yesterday, President Leonel Fernandez sent the contract for the studies, design, construction and financing of Monte Grande and the rehabilitation of Sabana Grande dam to the Senate.
Seems to me that first you submit the plans, let the Senate advise, and then you start the bidding process. Oh, that's right. No bidding in the DR. "the government awarded"
Morning radio talk show El Gobierno de la Manana speculated that the contract had been signed by the controversial Hector Rodriguez Pimentel, former director of the state waterworks department, INDRHI. Investigative TV journalist Alicia Ortega has revealed details of major corruption in his handling of dam projects when he was at INDRHI. Ortega presented evidence of a 1,200% overvaluation of the cost of the Monte Grande dam.
Pero, please, no ITBIS by DGA!!! We must sell first to collect ITBIS and forward it to DGII...
I have said, many times before, we are broke. The government desperately needs funds. This would have raised taxes by FIVE BILLION PESOS, and it still would not have been enough. Remember Bengoa that POS said no new taxes. He forgot to mention raping us with increases, however. How are they going to raise this money now. Stay tuned for their next hornswaggle.
Maybe you mean that we are running a deficit , Maybe you mean that the current income is lower than the current expenditure . What exactly do you mean ??
Do you think that it is better to destroy the entire competitiveness of our industries just so the government can temporarily have more money in the bank ?? So you think that petrol sales will remain at the same level and that other taxes will remain the same and that it does not matter that every item you buy will rise by at least 15% and that we will have galloping inflation that will impact on every poor person ,
The Domincans need to make a decision.
Do you want to keep on being a socialist economy and pay more taxes or do you want to embrace freedom?