Santo Domingo.- Halt, without exception, all tax breaks given to the various economic sectors, lower tax rates and a broader tax base is the long-term formula proposed by the Regional Sustainable Economic Strategies Center (CREES) to once-and-for-all, surmount the fiscal deficit biting at the feet of government.
CREES president and mogul Marino Ginebra announced the approach Thursday during the conference "Structural Economic Reforms: Path to Sustainability," with speakers including prominent economists and government reform experts from Argentina, New Zealand and the U.S.
The CREES president said the exemptions lead to distortions because they only fill gaps which are generated elsewhere, even from external factors.
He questioned, for example, why exemptions or special taxes are given to the imports of durable goods for the tourism sector.
In his view, everything is linked to an overvalued currency, since that productive segment cannot stand this situation and for that reason has to be given a tax subsidy.
Ginebra said it’s possible and perfectly applicable for Dominican Republic to survive without the need to resort to an IMF agreement, since the austerity outlined by president Danilo Medina proves it. "The solution we can apply ourselves is better than what the Fund could propose."
“What wil the Fund bring? You might say it will bring additional money, but until when. It could bring US$300 million, other millions will be disbursed by the World Bank and a similar figure from the Interamerican Development Bank. Alltold it could reach US$1.0 billion, but just the electric sector’s debt is US$1.2 billion. Those figures tells us that the solution has to come from within, from ourselves,” the business leader said.