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Santo Domingo.– Treasury minister Daniel Toribio revealed Wednesday that since 2008 the tax exemptions and incentives to benefit the various productive sectors have cost the Government RD$418.9 billion (US$11.0 billion), stipulated in 33 legislations which jeopardize the tax system’s potential.
He affirmed that a tax increase isn’t needed and instead to take the most advantage from those levies, eliminating exemptions and preventing evasion.
The official said prior to an Integral Tax Reform the duplicities and overlapping functions in government agencies must be eradicated, and correct the problem of electricity.
But to achieve those objectives, Toribio cautioned that the different political and social sectors must agree on a pact. “The Government must have more muscle and less grease. The issue of the Dominican Republic isn’t the amount of the cost, but the quality.”
Speaking in the American Chamber of Commerce’s monthly luncheon, the Treasury chief criticized the country’s 140 incentives for types of taxes and 22 special laws that assign specific amounts to different institutions, an amount he affirms equals 70% of the total budget, “when the Government should manage an overall fund and distribute the money from there”.
Lack of revenue
The exemptions will mean that the Government won’t collect RD$108.3 billion this year, or RD$3.6 billion fewer compared with 2010, from not taking advantage of RD$104.7 billion.
Toribio, speaking on the topic “Towards an Integral Tax Reform,” added that those benefits are 1.4 times the 2011 estimated income and 1.28 times higher than the expenses budgeted for that same year.
Big business disagrees
National Business Council president (Conep) Manuel Diez disagreed with Toribio, noting that the government shouldn’t have to eliminate tax incentive laws and exemptions that benefit productive sectors.
He said he doubts that the government lost any of the figures from the incentive laws cited by Toribio. “Those words don’t measure the consequence of not having those laws.”
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No equipment for the science labs but fluckin' great frat parties!
Average mental age if the Dominican politikero is about 14.
When in group (like Congress), it goes down to 11 1/2.
Funny WalterPolo.
I wonder how much their transparent corruption has cost the rest of the country?
the wealthy like to see their bank number grow, its bullshit that tax cuts create jobs... look at the US, 4 trillion dollars worth of tax cut and still the economy is not doing well... the recipients have pocketed the money and are not investing it. Time for some socialism and heavier taxation... (on the wealthy)
This is the reason why capitalism is flawed, it thrives in corrupt environments without any accountability whatsoever.
Hey rodrigito,
What is wrong with this statement for the article?
"Treasury minister Daniel Toribio revealed Wednesday that since 2008 the tax exemptions and incentives to benefit the various productive sectors have cost the Government"
I'll save you the trouble........Tax breaks don't "COST" the government anything.
It isn't their money to begin with.
Capitalism works just fine. It is the entitlement attitude combined with Socialist/Fascist political class(Like the one in the D.R.) that is severely flawed
who the fack said DR was a capitalist country?
let those companies keep they're money and have the gov get the house in order and limit spending. why the fack does the DR need so much money so leonel can pocket it? soon to be hippo. the more money there is in Dominicans hands the better, we should reward success by giving them tax breaks, after all they're the ones making all the risks and sacrifices so they can make so much money, want the DR economy to grow faster? cut all taxes to the minimum and reform all spending and watch a real boom in DR. look at that little country that we sometimes call Miami, look how they are doing now with Luis Fortuna. and employ Dominicans along the way. gov is nothing but a cancer and you should try to keep it a as small as possible.
you are one big idiot, when you tax the rich, gov tax receipts decrease, look at when the former NY gov raised taxes on the rich what happened? they moved out to another state and some even out the country. now what happened to NY? were they able to cover the budget? hell no. even the former NY gov admitted that it was a stupid mistake. why you think big corporations love non income tax states? socialism never worked and never will. no system is perfect but what system works best? what system has had the best results? taking people out of they're misery and poverty? its CAPITALISM.
go move to Venezuela and see how great it is to live on handouts and be full dependent on the gov. many smart people with great ideas are put to waste because of VZ's beaucracy.
To ween Dominicans out of this dreadfulness will not be easy given the historical entitlement mentality developed through the generations to manage populism and clientelism in DR. DR needs leadership that doesn't shy away the necessary steps towards modernization: the need to correct bad practices through sweat, tears and sacrifice. All the lands above went through difficult, somethings horrific developments, but they persevered and have been able to uplift their small lands into modern states.
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