They say that there will be no more tax reforms in the administration
SANTO DOMINGO. The head of the Directorate General of Internal Taxes (DGII), Guarocuya Felix, said yesterday that this administration does not have any plans for another tax reform, although he did say that they are thinking about carrying out a fiscal pact which improves, not only the tax pressure but also contributes to a better make up of the fiscal pressure.
“It is not possible for us to have the state income so concentrated in only three tax areas, this is a pending issue,” he said. The official said also that 67% of the income is produced by indirect taxes, which reflects the bad fiscal structure which the Dominican Republic has.
Taking part as the guest speaker at the Luncheon Conference of the Shippers Association of the Dominican Republic, Felix pointed out that since President Danilo Medina was a candidate, he saw the need for a (tax) reform in order to produce RD$55 billion, and the project that he sent to the Congress was for RD$45 billion and what came out of the legislature was for RD$35 billion, but they ended up applying one for RD$24.5 billion.
“Remember that they postponed the 1% tax on motor vehicle registration renewals, and in addition they took other decisions that impacted on the reform itself, and therefore the reform ended up at RD$24.5 billion”, he noted.
The official pointed out that the effects of the last fiscal reform contributed to 2013 being a year of balancing the fiscal accounts, which implied, on the one hand, a significant reduction of spending, from the comparative point of view of the GDP, but at the same time produced an increase in income.
“We were also conscious at the economic team that by doing this simultaneously the effect that it has is a shock to the economy, with an increase in the oil prices, with a strong natural disaster,” he said.
He explained that all this had an effect on the performance of the economy in 2013, when a slow and smooth, yet firm, evolution took place.
During the meeting with the ship owners, Guarocuya Felix explained that there is a part of the deficit that builds up because of the structural performance of the expenditures, so that in the internal conversations on the economic performance it is always pointed out that the expenditures are on a bicycle and the income is walking. He stressed that the income is literally walking, because the expenditures grows at a greater speed.
ANRD stresses the work of the DGII
During the activity, the ANRD president Teddy Heinsen, stressed the principles of generality and equality under which they should establish the taxes.
In addition, in his words, Heinsen weighed the work that the authorities have been doing in order to minimize tax evasion, which, he explained, is shown through the installation of the tax printers, the strengthening of the internal controls and of the reports of those who have not complied with the law.
Category: DR News |