Government: tax reform doesn’t mean higher taxes
The Medina administration issued a press release through its Communications Agency (Dicom) on Thursday, 16 June 2016 stating that the fiscal reform it is promoting would not create new taxes or raise existing ones, but that it would use mechanisms to increase collections without affecting people’s income. This week, Medina government officials, including Administrative Minister of the Presidency Jose Ramon Peralta, have advocated for the passage of the Fiscal Pact included in the National Development Strategy (END). Peralta says that tax evasion is high.
The Medina administration insists that reform is necessary to improve several sectors such as health, education, safety, housing and improving wages of government employees.
The business sector has called for a reduction in wasteful government spending in order to generate savings and for a reduction in informal trade, which is not taxed.
An editorial in Diario Libre on Monday 20 June 2016 reflects the widespread skepticism at the affirmation that this fiscal reform will not mean a greater tax burden for Dominican consumers and businesses. The writer calls on the government to puts its cards on the table.
Inter-American Business Association (Asine) president Leonel Castellanos Duarte says that multinationals and government entities that benefit from tax exemptions on imports of equipment and materials should be taxed. He said that the exemptions they currently enjoy give them an unfair advantage on the local market.
Meanwhile, tax expert Francisco Canahuate believes that the time has come to reduce taxes and simplify the tax system while increasing the number of taxpayers. He said that lower taxes would encourage more people to pay taxes, reducing evasion and the size of the informal economy.
Source: DR1, Listindiario
June 20, 2016
Category: DR News |