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Ana Vertilia Cabrera, second from left. Photo elnuevodiario.com.do
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Santo Domingo.- "A coup de grace" against the poor is what the Homemakers Association on Tuesday called the 8 to 11% jump on the Itbis tax on household and grocery products.

Homemakers president Ana Vertilia Cabrera slammed the Government for insisting on hurting what she called the population’s already precarious situation and suggests repealing the measure, while discarding retailers’ affirmations that they haven’t applied the increase, as they had pledged.

"We don’t know how to extend the injured family budget, because this new blow, which not only applies to industrialized items, is also reflected in others, there’ s no guarantee of controls," she said, and noted that “everything is left to supply and demand in a market dominated by large gougers."

Cabrera added that homemakers are concerned about the rise in staple products, because no authority has confronted it as the “demagogy of large supermarket chains, announcing to assume it, when what we they is apply increases above the 11% established.”

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COMMENTS
44 comment(s)
Written by: josean, 8 Jan 2014 8:33 AM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016


Ladies go after IDIOT IRS Atabey the number one PURPLE CLAPPING SEAL in favor of you being MUGGED with TAXES to cover NARCO Lie-onel's THEFT!


Written by: anbro2007, 8 Jan 2014 8:54 AM
From: United States
Josean, good comment !!!!!!!!!!!!!!!! Nothing to add on!!!
Written by: zooma, 8 Jan 2014 8:56 AM
From: United States, and Dominican Republic

The truth hurts as there are no controls and the result is confusion and chaos. The consumer of foodstuffs, especially the poor, have no choice other than to pay or be malnourished. Most of the time they cannot pay, we know the result. There is no published list of what commodities are subject to the tax. The result is it offers shady vendors the opportunity to place items not subject to the tax into a taxable sales index and keep the ghost profits for themselves. It also hinders reputable merchants who want to conform to the tax law, but they have no idea of what is taxable or not.

The government should rethink this tax issue, sooner or later there is going to be a terrible backlash against this taxation. The unanswered question is how much longer is the government going to keep pushing the threshold of people's ability to cope with its behavior.

Written by: Atabey, 8 Jan 2014 9:43 AM
From: United States, Bring DT Forum Back--

Yea, especially considering that the culture of "No pagar" has left the State coffer's with a big hole. Electricity subsidies? If you want modern schools, modern railways, modern roads and bridges, one day a modern sewage system to cover most of the capitol, and all the rest of modernity, guess what: You have to pay in.

Of course, it would help tremendously if DR were to tackle its informality problems in economic activities, change its overall culture of "No Pagar," and establish greater share burden on the part of the higher wealth generators in the land.

But the "representative democratic games" of developing countries such as ours seldom so easily mature into responsible governance so quickly.

"El Tabacco es fueite, pero hay que fumarlo."


Hopefully the gap between the two stages will be a short one, and DR will become a more responsible State and Nation where economic informality and the culture of "No pagar" will have far lower negative impact on our future.
Written by: anbro2007, 8 Jan 2014 9:46 AM
From: United States
If the so called Government would only steal 50% less, everything would be paid for!!!!!!!!!!!!!!! And they still would have their pockets full of money!!!
Written by: Atabey, 8 Jan 2014 10:07 AM
From: United States, Bring DT Forum Back--

50% is a crazy figure and has NO basis in reality. The facts are that historically speaking, or since at least the end of the Trujillo Era, DR has had one of the LOWEST tax burdens of all the Latin American nations.

That's a significant reason why we never financed a true National Education Plan and thus explains why we have one of the least educated populations in all of Latin America. But apart from a lack of funding for education (teachers pay, schools, staff training, equipment, maintenance, etc) ALL the other systems of modernity went lacking as the population pressure in DR exploded from the 1950s until today. Keeping up with such explosive population growth rates necessitated far more tax burden for public investments in schools, roads, hospitals, ELECTRICAL modernization .
When you include corruption AND THE CULTURE OF "NO PAGAR" then you realize why we're in our current state and not far better as a State and Nation.


Written by: BASTA, 8 Jan 2014 10:41 AM
From: Dominican Republic, =Ghetto/Legalize Drugs/Free abortions for all Never Confuse Education with Intelligence
Dozens of former New York police and firemen in 9/11 disability fraud
Written by: dreadlocks, 8 Jan 2014 11:48 AM
From: United States
Atabey, the issue here is the indirect taxes on consumer staples in the form of ITBIS. show me where the indirect taxation in the DR has traditionally been among the lowest in the region you refer to.
Written by: Perception, 8 Jan 2014 12:16 PM
From: United States
Certain food item shouldn't be "Taxed".


"Unprocessed Vegetables".*


Think.***
Written by: Atabey, 8 Jan 2014 12:19 PM
From: United States, Bring DT Forum Back--


Miraculous! Perception's comment makes sense:

Certain food item shouldn't be "Taxed".


"Unprocessed Vegetables".*



Increible!


Written by: anthonyC, 8 Jan 2014 12:24 PM
From: United States


You morons continue to vote for the PLD, PRD and PRSC and then complain about taxes, corruption and the general failure of government.
Just exactly who do you think you are voting for?


How F*cked up is the DR?

You actually have a "Homemakers Association" that is how F*Cked up it is.



Written by: Atabey, 8 Jan 2014 12:30 PM
From: United States, Bring DT Forum Back--
dreadlocks,

"Atabey, the issue here is the indirect taxes on consumer staples in the form of ITBIS. "

I disagree. Again, the Fiscal Hole that financing the energy deficit and all the other modernization projects necessitates tax collection. As you well know, in the DR we have a well developed culture of "No Pagar" and this culture has led us to think that there are many "free lunches" available all you have to do is take what you want and "let the other guy pay for it" That culture of "No pagar"
has been very bad for the State and ultimately for the people of the DR as its starved the State of fiscal revenues that could have been used to modernize and provide all the social and economic underpinnings for a modern Nation-State. Our National Educational disaster is one great example of this. USA wanted Balaguer to commit to spending 10% of GDP on National education because they determined that DR had a seriously under-educated population back in the mid 19 60s.

Written by: Atabey, 8 Jan 2014 1:00 PM
From: United States, Bring DT Forum Back--


10,530 new businesses in Greater Santo Domingo in 2013

The Santo Domingo Chamber of Commerce has told Diario Libre that 10,530 companies were registered in 2013, which is 27.45% more than in 2012, when 8,262 companies went legit. Taxation, red tape and high labor costs have kept many would-be companies informal, but government procurement contracts seem to be encouraging more companies to formalize their status, reports the article. He says that the government awarded more than RD$65 billion in contracts, of which small business received RD$41 billion last year, according to Yokasta Guzman, director of Government Procurement. She reported that 18,000 new companies registered to sell to the government in 2013.

Fernando Ferran, vice president of the Santo Domingo Chamber of Commerce, says that 60-65% of the new companies will not make it past the first year.

Ferran says that the modalities for company formation chosen were:

Written by: Atabey, 8 Jan 2014 1:01 PM
From: United States, Bring DT Forum Back--
10,530 new businesses in Greater Santo Domingo in 2013

Fernando Ferran, vice president of the Santo Domingo Chamber of Commerce, says that 60-65% of the new companies will not make it past the first year.

Ferran says that the modalities for company formation chosen were:

* Sociedades Anonimas Simplificadas (SAS): 90
* Sociedades de Responsabilidad Limitada (SRL): 9,383
* Empresas Individuales con Responsabilidad Limitada (EIRL): 494
* Sociedades Anonimas (SA) 54
* Sociedades en Nombre Colectivo 1
* Sociedades Extranjeras 366.

He said even more companies would be formalized in 2014 with the start of operation of the single window initiative (Ventanilla Unica) that cuts red tape. "


Dready, if things were SOOOOO bad, why 10,500 new business in Greater Santo Domingo since 2012?


Source:

diariolibre.com/empresas/2014/01/07/i427721_2013-constituyeron-530-empresas-que-2012.html


Written by: Perception, 8 Jan 2014 2:23 PM
From: United States
Correction.*

Grain.
Fruits.
Vegetables.

"Not Imported".

Unproseced. !


Stare.***


Written by: DomRat, 8 Jan 2014 5:41 PM
From: Dominican Republic
What is the point in BonoGas and various government hand outs and then taxing the food we eat. What's next the air we breathe?
Basic food stuffs and clean water should NEVER be taxed anywhere. Talk about a basic human right, I can't think of another.
Written by: DomRat, 8 Jan 2014 5:44 PM
From: Dominican Republic
Only can't get the personal pleasure meter working of that would be taxed. Will the be like NWO fans, wanting to tax the farmer on his cows and chickens next. That chicken that produced an egg and [the government wanting a piece of it....ridiculous.
Written by: dreadlocks, 8 Jan 2014 7:38 PM
From: United States
what do you disagree with, Atabey? what is the issue being discussed in the article/ is it not the increase in the consumer tax?

or are you disagreeing just to argue?
Written by: dreadlocks, 8 Jan 2014 7:42 PM
From: United States
Asks Atabey

Dready, if things were SOOOOO bad, why 10,500 new business in Greater Santo Domingo since 2012?

how many are still operating today? did you read the part where it was suggested that 65% won't make it past the first year?
Written by: Atabey, 8 Jan 2014 8:16 PM
From: United States, Bring DT Forum Back--
Written by: dreadlocks, 8 Jan 2014 7:42 PM
From: United States

Asks Atabey

Dready, if things were SOOOOO bad, why 10,500 new business in Greater Santo Domingo since 2012?

how many are still operating today? did you read the part where it was suggested that 65% won't make it past the first year?"


In the states, it could be as high as 80%.

But, again the INCREASE over year is the interesting stat it didn't go down did it?

" which is 27.45% more than in 2012," and 'when 8,262 companies went legit"

legit ! Now that's a good thing, no?


More formality in economic activity.



;)

Written by: dreadlocks, 8 Jan 2014 9:18 PM
From: United States
in the USA, it could be as high as 80%. here, too. it is called accuracy in preparation of data.
Written by: dreadlocks, 8 Jan 2014 9:21 PM
From: United States
Atabey, here is the breakdown

"Seven out of 10 new employer firms survive at least 2 years, half at least 5 years, a third at least 10 years, and a quarter stay in business 15 years or more.

Written by: Atabey, 8 Jan 2014 9:33 PM
From: United States, Bring DT Forum Back--

Dready,

Remember last year when Medina's Administration followed through on the tax hikes and you and Josea among the posse went all crazy about the coming doom for DR's prospect?

Well, Dready, that Magic 8 Ball was just a tad off, wouldn't you say now in hind sight?

The DR is doing better than expected. It needs to get that awful mess in the energy sector strengthened out because that nonsense has only made DR's economic growth lower than it would otherwise be.

The fact that more businesses are being formalized is also a plus. It will drive down the number of businesses working off the books, etc., and under-reporting their real gains.

Some adjustments in rates to affect higher wealth groups and things might really take off.

Improving the culture of "No pago" is a challenge that needs to be fought hard.

Once the nonsense with Haiti is taken care of, things might perk up nicely.



:)

Written by: josean, 8 Jan 2014 9:49 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016


"The DR is doing better than expected"

Fu#king nuts as usual!


Written by: Atabey, 8 Jan 2014 9:59 PM
From: United States, Bring DT Forum Back--


Hey, you're wanted on the sports pages.


;)


Written by: dreadlocks, 8 Jan 2014 9:59 PM
From: United States
says Atabey

The fact that more businesses are being formalized is also a plus. It will drive down the number of businesses working off the books, etc., and under-reporting their real gains.

you are joking, right?

it is regulation that drives business into the informal sector, not the other way around.
Written by: Atabey, 8 Jan 2014 10:05 PM
From: United States, Bring DT Forum Back--


Well Dready, say that to Haiti's 95% informal sector and DR's smaller but still large informal sector.

The Culture of "No PAGO" is very tenacious, but needs to be corrected. Those small businesses in San Francisco and La Vega, Mao don't want to face the necessity of paying for the Modernization process. Of course, many will be the first to criticize the government for not improving transportation,, etc.


Everyone has to put something into the kettle.


:)

Written by: dreadlocks, 8 Jan 2014 10:15 PM
From: United States
i am aware that everyone SHOULD pay. that is not how the real world works. that is why even major players like Baninter kept 2 sets of books. try collecting taxes from certain operators, they simply go underground. real world...
Written by: Atabey, 8 Jan 2014 10:37 PM
From: United States, Bring DT Forum Back--

" try collecting taxes from certain operators, they simply go underground. real world..."

Well, Dready what are the alternatives?

Allow things to go on as before? Unless a nation-state can orchestrate a reliable and efficient system of taxation and capture, it's institutionalization will remain underwhelming for the task of creating modernity, especially in a country so riddle with false starts and dashed dreams as the Dominican Republic.

There are many other problems about, but this one needs to be corrected if DR is to address its lack of modernity.


Written by: dreadlocks, 8 Jan 2014 10:44 PM
From: United States
edit

Written by: dreadlocks, 8 Jan 2014 10:44 PM
From: United States
so tell us how you would stop them from drifting into informality....
Written by: danny00, 8 Jan 2014 10:51 PM
From: United States, Old Westbury Long Island
lots of business open and just as fast closed just in Plaza Acropolis and the blue mall.....least these Tryed but it could be other factors that caused these closures.....lack of business experience, taxes way too high limited sales?....look at the blue mall, Acropolis plaza central just to name some of the problems they all have mostly the same stores selling the same products....these malls have at least 3 Pizza shops right next to each in the food courts.....very busy area but are their enough people with money to support these stores? It's like I saw for years in Puerto Plata the gift shops near Central Park so many shops and every one if them sell the same products then u went to playa Dorda and these shops also sold the same Crap.if u look at the clothes the girls are wearing same blouse the same jeans and shoes .....monkey see monkey do?
Written by: Atabey, 8 Jan 2014 10:53 PM
From: United States, Bring DT Forum Back--

First, YOU CAN NEVER ACHIEVE 100% capture. So, before you start recognize that fact.

But all these stores that are operating businesses of 8.7 million pesos and 30 million pesos purchases are definitely legitimate targets to add to the formal sector.

And those machines would add one layer to the enforcement mechanism. Of course, they could use cash under the table. But you send investigators with hidden cameras. You'll catch a few and perhaps deter many others, although some will continue to gamble. Fines, perk up some measure of respect. But again, if you don't try, they will never give up their old ways.

Written by: danny00, 9 Jan 2014 12:19 AM
From: United States, Old Westbury Long Island
Years ago I know some small shop onwers in POP they told me they would never pay any taxes due on their sales ( small amount and hide the rest) they would fly to New York go into shops that where having 50% or more off buy as much as they needed put it into a plastic garbage bag and take it back for resale in POP....these guys knew nothing about business maybe they where better suited for one flea market..... Lets take Macy's Dept stores end of the year 50% or more off on Polo Men's Shirts? Sounds good right? ......not really most of the time they have bad colors and mostly size small left at the end of the season....in men's clothing size Small is the worst seller....how many men that u know wear a size small?.....going back to taxes it seems like FU---the Govt I'm not paying nothing to these crooks in the Govt........it seems to me this is one Vicious Cycle with no end in sight.
Written by: josean, 9 Jan 2014 3:55 AM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

"the Modernization process"

"creating modernity"

"But you send investigators with hidden cameras."


The same old tired themes and nonsensical ideas!



Written by: Atabey, 9 Jan 2014 11:18 AM
From: United States, Bring DT Forum Back--


Josea, pay your taxes. Enough "free cheese" for you.


;)


Written by: josean, 10 Jan 2014 7:09 AM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016



How are your Puerto Rican In-laws Doña Residencia y Don Wilfredo and your borther and sister in-law Food Stamp and Section 8!


Written by: Atabey, 10 Jan 2014 9:39 AM
From: United States, Bring DT Forum Back--


There's the spirit!

Now that you've been embarrassingly skinned before all for your lack of patriotismo and defensa del país, your idiota naïveté concerning the on goings in the baseball projet exposed, we again have your insight of what's really important in the tax burden and collection discusión dready and I are having.

Another example of your kakalami mind.




:)


Written by: josean, 10 Jan 2014 10:35 AM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016



Very Weak as Usual!



PS


When is opening day at La Romana Yankee Stadium?



Written by: Atabey, 10 Jan 2014 10:52 AM
From: United States, Bring DT Forum Back--

Tiempo al Tiempo.



Why you always in a rush? First it's white plastic chairs @ the Guns & Chair get together, and now the stadium!


Learn to allow things to develop. We know The Hippo owes you back pay, but

Rome wasn't created in one day.



:)




Written by: Atabey, 10 Jan 2014 7:33 PM
From: United States, Bring DT Forum Back--


Entrevista a Víctor Castro, presidente Asociación Industrial de Herrera;


hoy.com.do/videos/todos/10-01-14tele-matutino/


Dready,

check out what he says concerning payment of taxes.




Written by: Atabey, 11 Jan 2014 3:37 PM
From: United States, Bring DT Forum Back--

Dready,

Something like 65% of the economic activity of DR is informal!!!

So the STATE IS ONLY SUPPORTED BY 35% !!!

That can not be allowed to continue. Why should these 35% shoulder the burden and free ride of the rest of society?

Institutionalization of the State is a sine qua non for the modernization of the nation-state of the Dominican Republic. The embedded "Yo No Pago" culture needs to be attacked and overturned or the attempted modernization program will fail.

We all know examples that demonstrate how difficult some people find it to change their free lunch ways, look at joseanus, a prime example of the old way, "give me mentality" that holds back the nation-state of DR.

But with another as* whipping come 2016, even he will have to change his veys.


Pay up, everyone has to put something into the Kittel.


;)


Written by: dreadlocks, 11 Jan 2014 7:43 PM
From: United States
be careful when you throw numbers around. does the statistic say that 65% of the businesses are informal, or that 65% of the economic activity is informal?
Written by: Atabey, 11 Jan 2014 9:14 PM
From: United States, Bring DT Forum Back--

Check out Victor's Interview above and tell us what you believe him to have stated.

I believe he also stated 90% for Haiti. But i could have read that figure in some other report.



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