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No new taxes through 2016 says Peralta

Administrative Minister of the Presidency Jose Ramon Peralta says there will be no new tax reform or new taxes. He said the government would be calling for discussions of a Fiscal Pact to be applied by the next administration as of 2016. Business sector representatives have called for the talks leading to the Fiscal Pact that was agreed upon in discussions for the National Development Strategy.

He said the Medina administration would work within its present taxation levels by making responsible use of revenues and keeping the fiscal deficit at 2.8%.

“For the rest of this government there will be no more fiscal reforms, we will adjust,” he said, as reported in Diario Libre.

The business sector is asking for a fairer fiscal regime where more pay taxes.

Business representatives say that the present regime has not been capable of reducing informality in the economy and this places a greater burden on those who do pay taxes.

The World Bank says that the poor and most vulnerable pay high taxes while there are no guarantees of adequate goods and services. The World Bank recommends replacing indirect taxes with direct taxes and revoking taxes on several basic goods. It is also critical of the many tax exemption regimes. The World Bank also calls for improved public spending that should be a priority to facilitate key issues under the National Development Strategies. The World Bank is proposing a review of fiscal exemptions.

Meanwhile, economist Pavel Isa Contreras says that the government first needs to tackle corruption and impunity that has led to high levels of wasteful spending in the Dominican Republic. He called for more transparency in government spending and redirecting of spending. He said the government needs the population in general to perceive that public resources are being used in a more effective and efficient way to finance goods and services that citizens are demanding, starting with health and education, infrastructure and a functioning judicial system, efficient public security and environmental protection.

Source: DR1, DiarioLibre

Category: DR News |

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Last updated October 24, 2016 at 6:05 PM
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