Dominican Republic halts US$52M tax break on fuels
Santo Domingo.- The government of the Dominican Republic on Thursday eliminated the monthly fuel subsidy provided to owners of buses and trucks since 2011, a measure expected to spur reprisal and higher fares.
In total the passenger and freight transport sector gets 3.8 million gallons of subsidized fuel, a tax break of RD$2.4 billion (US$52 million) a year, to avert increases in fares.
Industry and Commerce minister Temistocles Montas last night said the government doesn’t plan to resume the subsidy, provided through the program Bonogas. ”Almost half of the subsidy was used for other purposes, distorting the market and not as it was designed for,” Montas said.
As expected, the measure drew threats of higher urban and interurban fares from the major transport groups, which announced a visit to Industry and Commerce Friday to express their opposition.
Last week transport sector leaders told newspaper El Dia that they haven’t been receiving the subsidy since September 7 and threatened halt passenger and cargo service, as well as increased fares and rates.
Oct 16, 2016
Category: DR News |