Dominican Today Forum » Living in the DR » General Info » Dominican Republic : Why the middle class won't grow!
#1 - Posted 9 February 2012, 2:05 AM
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Dominican Republic : Why the middle class won't grow!


Indicó que unos sectores pagan más impuestos que otros, principalmente los de clase media, porque existe una estructura tributaria en la que el consumo determina los ingresos del Estado, en lugar la propiedad, la renta y la riqueza.

El director de Aduanas, Rafael Camilo, consideró este miércoles que es urgente someter el sistema tributario nacional a una reforma integral para corregir una serie de distorsiones e iniquidades que provocan que los sectores de menores ingresos paguen más impuestos.

Indicó que unos sectores pagan más impuestos que otros, principalmente los de clase media, porque existe una estructura tributaria en la que el consumo determina los ingresos del Estado, en lugar la propiedad, la renta y la riqueza.

Insistió en que gravar el consumo provoca que los que tienen menos ingresos paguen más impuestos.

Reveló que el 75 por ciento de los ingresos del Estado provienen de gravar el consumo.

“Esa es una estructura tributaria inequitativa, no progresiva, que afecta más a los sectores medios que a los sectores altos. Esas son de las cosas fuertes que nosotros tenemos que revisar”, precisó

Camilo explicó que la semana pasada entregó al presidente Leonel Fernández el borrador de una nueva ley de Aduanas, porque la actual data de 1953 y está obsoleta.

Dijo además, que en las actividades aduaneras del país intervienen 30 ó 40 leyes imposibles de administrar correctamente, porque contienen exenciones y privilegios que son válidos para un sector y para otros no.

“Tenemos unos niveles tan fuertes de evasión, pero tan fuerte también de quitarle competitividad a un sector y dárselo a otro que no la necesita, porque ya tiene 30 ó 40 años teniendo buenos beneficios y todavía sigue teniendo esas exenciones”, indicó.

Google Translate :

Customs director Rafael Camilo, found Wednesday that it is urgent to bring the national tax system to a comprehensive reform to correct a series of distortions and inequities that cause lower-income sectors pay more taxes.

He said some sectors pay more taxes than others, mainly the middle class because there is a tax structure which determines consumption state revenues instead of property, income and wealth.

He insisted that taxing consumption causes those with less income pay more taxes.

Revealed that 75 percent of state revenues come from taxing consumption.

"That's an unfair tax structure, not progressive, which affects more middle class than the upper classes. These are powerful things we have to check, "said

Camilo said that last week gave President Leonel Fernandez on draft of a new Customs Law, because the current dates from 1953 and is outdated.

He said that in the country's customs activities involving 30 or 40 laws impossible to manage properly, because they contain exemptions and privileges are valid for one sector and not for others.

"We have such strong levels of evasion, but also take as strong a sector competitiveness and give it to another who does not need it, because it has 30 or 40 years having good benefits and still having these exemptions," he said.

http://www.noticia24h.com/news/128/ARTICLE/20601/2012-02-08.html
Edited on 2/9/2012 2:07 AM by Belly.
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#2 - Posted 9 February 2012, 9:43 AM
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RE: Dominican Republic : Why the middle class won't grow!
"We have such strong levels of evasion, but also take as strong a sector competitiveness and give it to another who does not need it, because it has 30 or 40 years having good benefits and still having these exemptions," he said."

Strong level of tax evasion. How about simply putting a tax on Rents, property and wealth

"He said that in the country's customs activities involving 30 or 40 laws impossible to manage properly, because they contain exemptions and privileges are valid for one sector and not for others."

Eliminate the exemptions and privileges by enacting a small group of civic minded people to offer suggestions to the government that must be voted Up or Down. No negotiations after the list is submitted. And no exemptions and privileges beyond say a ten year norm. So any sector having received such accommodations is out of the running for a continuation.

Nothing too harsh, say an additional 10-15% tax.
Edited on 2/9/2012 9:47 AM by Atabey.

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#3 - Posted 7 March 2012, 9:20 PM
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RE: Dominican Republic : Why the middle class won't grow!


Trade Competitiveness Map

Analyse country and product competitiveness with trade flows

http://www.intracen.org/country/dominican-republic/


Dominican Republic

Development Challenges

Recently recovered from the global recession, the Dominican Republic remains one of the fastest-growing economies in the region. The traditional main activity of the country, the export of sugar, coffee and tobacco, has been replaced by the services sector, in particular tourism and telecommunications, becoming the economy’s largest employer over the agricultural sector. Nevertheless, the agricultural sector has maintained its importance in terms of domestic consumption and is the second highest sector (behind mining) in terms of export earnings. Foreign direct investment is principally aimed towards the Dominican Republic’s manufacturing sector. The country faces development challenges, including:

Inequality and poverty
High levels of unemployment and underemployment
Inefficient tax collection
Successive thefts
Inappropriate infrastructure
Corruption
Poor access to quality primary public education
High dependence in remittances from foreign countries
Highly politicized electricity distribution system

Key Trade Issues
Need to diversify trading partners
Lack of free trade agreements within the region

Government Priorities
To continue regional and international integration especially with countries in the Western hemisphere and with the principal European capitals
To boost exports
To shore up dwindling revenues
To fix more favorable rates with private lenders
To address electricity sector inefficiencies
To improve fiscal management
To keep fighting against the trafficking of illegal substances
To improve the Dominican Republic’s competitiveness
To enhance environmental protection


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Trade and Investment Data
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Detailed data on the country’s export performance, key imports and foreign investment, grouped by product and service categories (HS and BOP).
Trade Performance Index (14 sectors)
Export Performance (HS)
Import Profile (HS)
Foreign investment statistics (FDI)
Trade in goods statistics (HS)
Trade in services statistics (BOP)
Consistency of Trade Statistics
Trade Information Sources
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Trade Contacts
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The most important trade contacts, including importers’ and exporters’ associations, trade support institutions, trade promotion organizations and institutions providing business development assistance.



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#4 - Posted 12 March 2012, 8:09 PM
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RE: Dominican Republic : Why the middle class won't grow!
Quote:
Atabey previously said:



Trade Competitiveness Map

Analyse country and product competitiveness with trade flows

http://www.intracen.org/country/dominican-republic/


Dominican Republic

Development Challenges

Recently recovered from the global recession, the Dominican Republic remains one of the fastest-growing economies in the region. The traditional main activity of the country, the export of sugar, coffee and tobacco, has been replaced by the services sector, in particular tourism and telecommunications, becoming the economy’s largest employer over the agricultural sector. Nevertheless, the agricultural sector has maintained its importance in terms of domestic consumption and is the second highest sector (behind mining) in terms of export earnings. Foreign direct investment is principally aimed towards the Dominican Republic’s manufacturing sector. The country faces development challenges, including:

Inequality and poverty
High levels of unemployment and underemployment
Inefficient tax collection
Successive thefts
Inappropriate infrastructure
Corruption
Poor access to quality primary public education
High dependence in remittances from foreign countries
Highly politicized electricity distribution system

Key Trade Issues
Need to diversify trading partners
Lack of free trade agreements within the region

Government Priorities
To continue regional and international integration especially with countries in the Western hemisphere and with the principal European capitals
To boost exports
To shore up dwindling revenues
To fix more favorable rates with private lenders
To address electricity sector inefficiencies
To improve fiscal management
To keep fighting against the trafficking of illegal substances
To improve the Dominican Republic’s competitiveness
To enhance environmental protection


Trade and Tariff Graphs
Open >
Graphs of the country’s export markets, its export performance in a key sector and tariffs exporters of a sample product face.
Trade and Investment Data
Close >
Detailed data on the country’s export performance, key imports and foreign investment, grouped by product and service categories (HS and BOP).
Trade Performance Index (14 sectors)
Export Performance (HS)
Import Profile (HS)
Foreign investment statistics (FDI)
Trade in goods statistics (HS)
Trade in services statistics (BOP)
Consistency of Trade Statistics
Trade Information Sources
Open >
A listing of country specific print and online publications on trade related topics. Includes information from both ITC and external sources.
Trade Contacts
Open >

The most important trade contacts, including importers’ and exporters’ associations, trade support institutions, trade promotion organizations and institutions providing business development assistance.






Stupid post!

Only a small portion of the economy is required to feed exports: the rest should be directed to increase the welfare of the people!

S.
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