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World Bank study calls for improving public services

A World Bank sponsored study on Fiscal Policy and Redistribution in the Dominican Republic presented on Tuesday, 12 December 2016 at the Presidential Palace states that any increase in the ITBIS tax beyond its current 18% level would be regressive. At the same time the study points out that public spending on social services and infrastructure in the country is insufficient and ineffective.

World Bank vice president for Latin America and the Caribbean, Jorge Familiar was in the Dominican Republic for a two-day visit starting on Monday, 12 December 2016. He met with national authorities on future contributions aimed at reducing extreme poverty.

The study concludes: “Going forward, the challenge is to increase revenue collection without affecting the poor and vulnerable, while improving public service delivery.”

The report found that that so far, the fiscal system achieves intermediate levels of inequality reduction through direct and indirect taxation, transfers and subsidies, and it generates very little horizontal inequality. It concludes that enhancing the quality of public services would be a priority in the Dominican Republic, as it would not only help achieving social outcomes, but also improve citizen trust in institutions, which could ultimately lead towards formalization of economic activity and improved revenue collection.

Source: DR1, DiarioLibre

Dec 17, 2016

Category: DR News |

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Last updated November 17, 2017 at 12:17 PM
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