Santo Domingo. - The Government must pledge to the International Monetary Fund (IMF)that it will identify “effective” sources to increase tax collections and that there won’t be delays in paying the electricity sector’s subsidy, the Minister of the Economy revealed Thursday.
Temístocles Montas said the IMF insists that it’s not possible for the Government to carry out effective actions with such a low tax collection pressure as low as the current one in the country and which, according to reports, is around 13 percent.
He said higher international oil prices have caused such a problem for the electrical sector that the Government will have to seek additional funds in addition to the 350 million dollars allocated for that sector in this year’s Budget.
Revision Delayed
Montas said those inconveniences caused delays in the fifth revision of the Letter of intent for the Stand-by Agreement with the IMF, since it had to be concluded in March, for which the Government will have to do it next to the sixth revision in the shortest possible time. “The Government will have to provide the IMF with the formulas that guaranteed that those resources are going to appear and that they won’t generate delays in the electrical sector.”
The official however affirmed that despite the need to improve collections, the economic team, “so far” hasn’t thought about a new tax reform. “And what this is about therefore, is to look for ways to increase income, guaranteeing an improvement of the fiscal administration and higher efficiency in collections.”
DR isn’t priority for development assistance
During the activity to present the Third Survey on the Effectiveness of Aid to Development 2010, America Bastidas, Economy vice-minister for International Cooperation, said Dominican Republic is one of the countries that belong to the group whose average income is such that they aren’t a priority of the multilateral agencies which allocate official aid for development.
She said the global crisis has negatively impacted the budgetary capacities of the countries donors.
From: United States, FREEPORT, Long Island.... ((You're blind to the fact that you're blind))
And, no one saw this coming.....RIGHT!!
Its like asking a third grader to participate in the fundamental branch of mathematics focused on limits, functions, derivatives, integrals, and infinite series.
From: Dominican Republic, calle A.Portes
Yes , there is no need to impose more taxes but just to be better at collecting the taxes ..tax evasion and avoidance is a world wide phenomenon and in most advanced countries the tax offices have highly sophisticated computer programmes that record interest payments and dividends and housing sales and a host of other information so it is more difficult to avoid tax.
There was a story yesterday about the honest companies paying an unfair burden of tax and the same is true for honest citizens who pay an unfair burden .
The very rich seek tax lawyers and accountants to invent ways of avoiding tax and the poor only pay the direct tax on purchases and so the tax burden falls unfairly on the middle class who have no way to avoid the taxes.
The government must target those people and companies at the top end who are are not paying their fair share ,,exactly as was reported here in DT yesterday .
From: United States, Fresh Water Paradise-NY Finger Lakes
@Roberto,
I remain impressed with your comments/knowledge of mathematics above.
One way to make up tax collection shortfall would be to curtail frivolous spending and skimming, and to bring down government employees salaries to be commensurate with our socio-politico-economic position in world.
Also, we don't need all of those ladronazo senadores and diputados and, while we are at it, we don't need all those judges, with all those funny and useless titles, either. Ditto for 98% of the generals.
When I see that exhorbitant amount of money wasted on Senator Aristy, imagine millions for protocol!, I cringe. How about the Ten million pesos for vehicle rental, and what about cost of hisfrivolous and most pompous helicopter rides? This is why we are where we are on socio-economic scale, and why we will stay there.
MJEV.
From: United States
"and that there won’t be delays in paying the electricity sector’s subsidy"
Failed right there.
Do not give them a cent.
From: United States, FREEPORT, Long Island.... ((You're blind to the fact that you're blind))
Thanks Glomar, it's all a numbers game.
I have a tailored education, that most don't understand. Its called "Life Experience"
Written by: Atabey, 1 Apr 2011 10:10 AM
From: United States, NYC
Glomar makes a lot of good points. The DR government has to reign in the spending and if it's to cut 12% of the budget, then by all means beginning with cuts as Glomar has stated. Of course, all this should and must not distract the modernizers of the DR state from enacting strong measures to extract taxes from the wealthier sectors of society who have enjoyed manipulating the system to their advantage. The modernization process dictates that they too must bear some of the burdens. The DR state has for many years allowed tax revenues to flow without extracting a modern sensible take and apply these revenues to REAL development in benefit of society. Thus the poor taxation and revenue generation by the State. But modernization can't take place under the "old ways" and a better collection regime must begin to operate. Basic infrastructure investments demands this and our nation's future prosperity too.
From: Dominican Republic, Puerto Plata
The Scandinavian or Canadian tax system models could be put to work, but would have to be managed by...Scandinavians or Canadians.
The remuneration package of the officials should be cut by an average 50%. No ifs, no buts.
The no-show jobs eliminated over 1 year.
And if they want foreign money, let the country checkbook be managed by foreigners.
From: United States, Brooklyn
20% at least.... And give money to education GodDamnIt
From: Dominican Republic, calle A.Portes
what glomar and walterpolo say is indeed very importantand and economies and more efficiency are vital but the savings are no where near the amount that people are not paying in due taxes ..the key to proper taxation is better collection and I agree with Atabey that we must have a very modern system of tax compliance .
Todat petrol prices rise again ...it is just an easy way for the government to collect tax but now places far too much of a tax burden on the motorists ,,They will soon increase the direct tax on goods as that is also relatively easy to control ,,,but they must go after those companies and people who are avoiding their tax and who are placing pressure on the honest people .
Written by: Atabey, 1 Apr 2011 3:12 PM
From: United States, NYC
What DR needs to do is follow in the foot steps of other recent modernizers: South Korea, Taiwan, etc. Explain to the people the enormous difficulties to be undertaken and set clear and reachable goals. Will it be easy: NO Will it be uplifting and prove an heroic challenge for the citizenry: YOU BET.
Some may question this and say: But these nations undertook these great modernization drives under strong dictatorial systems. Brutal measures for several decades were undertaken to make people submit to the program. No pain, No Gain. Now there's a challenge: to do it democratically. Is that possible?
From: Dominican Republic, Puerto Plata
Atabey
I've repeatdly posted I thought Haiti's recovery would be a sure thing if handled by Taiwanese or Koreans.
I also think DR would greatly benefit from a public administration input from those countries.
Question: would I still want to live here if DR were to become a "colony" of Taiwan?
From: Dominican Republic, calle A.Portes
I am not sure why you picked on Korea as a good tax example for tax compliance when it has a rather cumbersome tax structure and quite different to that of the DR. It is definitely a great example of an export led economy but not a good example of tax administration
It may please RoyStone no end , that Australia has a reputation of being one of the best tax administrating countries and their compliance division has assisted other countries .
However I believe there are Dominican accountants working in the USA government as well as here who could put together a much better compliance section than we have at present ...As normal it all comes down to money but on a cost benefit analysis , I am sure a new sytem would be a great winner
Written by: BASTA, 1 Apr 2011 4:55 PM
From: Dominican Republic, =Ghetto/Legalize Drugs/Free abortions for all
And GE owes no taxes to uncle Sam
Written by: Vivacuba, 1 Apr 2011 10:48 PM
From: Dominican Republic
IMF is a bunch of scum sucking cockroach criminals run by the leach mobster banks in the good ol' USA. Global enslavement for those countries bowing down to their evil. IF not, nations will end like Iraq, Libya, Iran, North Korea. Just say NO!
Written by: walnut, 2 Apr 2011 8:02 AM
From: Dominican Republic, La Romana
Tax collection, by those who avoid it, would be a good start.
I have friends with large villas, owned by off shore entities, who never pay real estate taxes.
They actually brag about.
Question remains however, even if identified, would they be compelled to have to pay?
Written by: Vivacuba, 2 Apr 2011 9:26 AM
From: Dominican Republic
walnut. You are a fool. Where do you think that tax money goes idot? To pay for roads, schools??? What a frickin' idiot!
From: Dominican Republic, navarette
ha ha ha like the USA, it is the wealthy that control the purse strings here, asking them to pay more taxes is like pulling teeth from a chicken .. The underclass will just have to pay more and thus more poor people. Like the USA, here in the DR, the upper classes have their avenues to avoid taxes.
Written by: Vivacuba, 2 Apr 2011 11:19 AM
From: Dominican Republic
richardholden, yes all correct. When the IMF sinks their teeth into this, "their avenues to avoid taxes" will quickly close. Global Enslavement. Start your own underground economy now. Be creative. Your life may very well depend upon it.
Written by: walnut, 2 Apr 2011 7:14 PM
From: Dominican Republic, La Romana
Vivacuba....
Change your diaper.
You, my friend, are the one appearing foolish.
My point is that with a correct and competent system of tax assessment and collection, there would be a larger revenue stream.
The tax collection system is non-existent.
Where the money goes is another point.
Your name reveals your slant.
Global enslavement? Put your bong away, it's bedtime.
Written by: Vivacuba, 3 Apr 2011 2:45 PM
From: Dominican Republic
walnut, pay your tivings you lowlife IMF loving pos
Written by: walnut, 3 Apr 2011 7:00 PM
From: Dominican Republic, La Romana
Yo viva,
You are delusional and ignore reality.
One of the topics of the article was about increasing tax revenues.
I agreed that if a better system existed, the DR and it's citizens would benefit.
Where you make the false assumption is about my sympathy to the IMF.
I do not sympathize with it and could care less.
Take off your tin foil hat, too.
Written by: Vivacuba, 3 Apr 2011 9:47 PM
From: Dominican Republic
I disagree that if a better system existed, the DR and it's citizens would benefit. The rich would continue to steal and pay it back over to the IMF (which is the criminal arm of the US Government and its transnational companies controlling them). But americans like to be slaves. The fact you do not sympathize with the IMF illustrates your lack of understanding how the current global taxation and banking system operates to strip the last drop of any wealth from the "taxpayers". How do you think increased taxes would benefit the citizens of the DR, USA, Europe or ANY country? How are the roads in USA? How is the infrastructures? How are the railways there? How are the Airports there? Taxation systems of 30-50% is pure theft and if you cant see that now, you never will.
Written by: Vivacuba, 3 Apr 2011 9:54 PM
From: Dominican Republic
The infrastructure in the DR may not be the best, but the taxes are not much either. Think about it fool, why would the "I.M.F." who is not even in the DR be concerned about tax collection in the DR? Do you think it is because they "CARE" about your infrastructure and schools? Get real! You probably suck a maggot $alary from them. Do you work for them? People in DR should continue to take care of themselves. The government sure as he;ll won't with *OR* without better tax collection. Remove your blinders. My tin foil hat is my antenna receiver for your fraud.
From: United States, Fresh Water Paradise-NY Finger Lakes
Yeah,
I think DR should become federated with Cuba, become commie country, then everything would be just fine...well, we would have our education and all of the wonderful opportunities the Cuban nation enjoys. Yes, that would be just ducky!
Yes, that would make Viva and Mucholoco extremely happy!
MJEV.
Written by: Vivacuba, 3 Apr 2011 10:12 PM
From: Dominican Republic
gloma, the whole world has reduced to poverty now by design. There is no place a human can go anymore to prosper. Therefore, why would anyone remain in any country that bleeds its people and continues to suppress them into more and more poverty. Cuba of course, everyone knows, is impoverished. At least the persons aren't tax slaves in addition. That's more than can be said for the IMF enslaved nations of the planet. Will they invade and tax foreign planets next? I think yes.
Written by: MarkS, 4 Apr 2011 6:07 AM
From: Dominican Republic, w/a NY State mailing address
If the government would have people check out how the houses are wired... they will find a lot of cheaters. I've seen on many occasions people 'rewiring' the electricity coming to their house- to avoid the meter. I once seen a meter popped off, with two heavy wires in its place. If they tracked down all of these, and fined them, or deny them electricity, we wouldn't be in such bad shape as we are today.
Written by: Vivacuba, 4 Apr 2011 8:57 AM
From: Dominican Republic
Ask for smart meters like they are getting in the country of california. Government bureaucrats will decide how much power you receive and to what appliance(s) at what time of day and can cut you off in a moment remotely.
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Its like asking a third grader to participate in the fundamental branch of mathematics focused on limits, functions, derivatives, integrals, and infinite series.
There was a story yesterday about the honest companies paying an unfair burden of tax and the same is true for honest citizens who pay an unfair burden .
The very rich seek tax lawyers and accountants to invent ways of avoiding tax and the poor only pay the direct tax on purchases and so the tax burden falls unfairly on the middle class who have no way to avoid the taxes.
The government must target those people and companies at the top end who are are not paying their fair share ,,exactly as was reported here in DT yesterday .
@Roberto,
I remain impressed with your comments/knowledge of mathematics above.
One way to make up tax collection shortfall would be to curtail frivolous spending and skimming, and to bring down government employees salaries to be commensurate with our socio-politico-economic position in world.
Also, we don't need all of those ladronazo senadores and diputados and, while we are at it, we don't need all those judges, with all those funny and useless titles, either. Ditto for 98% of the generals.
When I see that exhorbitant amount of money wasted on Senator Aristy, imagine millions for protocol!, I cringe. How about the Ten million pesos for vehicle rental, and what about cost of hisfrivolous and most pompous helicopter rides? This is why we are where we are on socio-economic scale, and why we will stay there.
MJEV.
"and that there won’t be delays in paying the electricity sector’s subsidy"
Failed right there.
Do not give them a cent.
I have a tailored education, that most don't understand. Its called "Life Experience"
The remuneration package of the officials should be cut by an average 50%. No ifs, no buts.
The no-show jobs eliminated over 1 year.
And if they want foreign money, let the country checkbook be managed by foreigners.
20% at least.... And give money to education GodDamnIt
Todat petrol prices rise again ...it is just an easy way for the government to collect tax but now places far too much of a tax burden on the motorists ,,They will soon increase the direct tax on goods as that is also relatively easy to control ,,,but they must go after those companies and people who are avoiding their tax and who are placing pressure on the honest people .
Some may question this and say: But these nations undertook these great modernization drives under strong dictatorial systems. Brutal measures for several decades were undertaken to make people submit to the program. No pain, No Gain. Now there's a challenge: to do it democratically. Is that possible?
I've repeatdly posted I thought Haiti's recovery would be a sure thing if handled by Taiwanese or Koreans.
I also think DR would greatly benefit from a public administration input from those countries.
Question: would I still want to live here if DR were to become a "colony" of Taiwan?
It may please RoyStone no end , that Australia has a reputation of being one of the best tax administrating countries and their compliance division has assisted other countries .
However I believe there are Dominican accountants working in the USA government as well as here who could put together a much better compliance section than we have at present ...As normal it all comes down to money but on a cost benefit analysis , I am sure a new sytem would be a great winner
I have friends with large villas, owned by off shore entities, who never pay real estate taxes.
They actually brag about.
Question remains however, even if identified, would they be compelled to have to pay?
Change your diaper.
You, my friend, are the one appearing foolish.
My point is that with a correct and competent system of tax assessment and collection, there would be a larger revenue stream.
The tax collection system is non-existent.
Where the money goes is another point.
Your name reveals your slant.
Global enslavement? Put your bong away, it's bedtime.
You are delusional and ignore reality.
One of the topics of the article was about increasing tax revenues.
I agreed that if a better system existed, the DR and it's citizens would benefit.
Where you make the false assumption is about my sympathy to the IMF.
I do not sympathize with it and could care less.
Take off your tin foil hat, too.
Yeah,
I think DR should become federated with Cuba, become commie country, then everything would be just fine...well, we would have our education and all of the wonderful opportunities the Cuban nation enjoys. Yes, that would be just ducky!
Yes, that would make Viva and Mucholoco extremely happy!
MJEV.