President Leonel Fernandez received yesterday the preliminary tax reform project that includes the elimination of several low-collection taxes, that increase bureaucracy in the government, as well as the exchange rate commission and other taxes that hinder the competitiveness of businesses. Diario Libre reports that the project includes the compensations demanded by the business sector but does not include a different VAT (ITBIS) as requested by the hotel sector. Taxes eliminated in the project are Civil Registry, naturalization of foreigners, land survey and taxes for ticket sales to sports stadiums and public performances. Also eliminated are the contributions determined by the quick divorce law as well as those required for the purchase of licenses to sell machines and accessories. The law taxing documents and their 97 categories is eliminated and those taxes are classified in only four operations: real estate transfers, other real estate operations, vehicle transfers and the formation of companies. The Executive Branch must now present the bill to Congress where it will be debated, and possibly modified, before being passed. El Caribe reports that the bill will be sent to Congress this same week. Other projects to be presented include a law for efficient collections, and budget autonomy for the Customs Department (DGA) and Tax Department (DGII). The use of consular invoices will automatically be eliminated once the DR-CAFTA comes into effect. According to Hoy, Montas said the government is strengthening the institutional foundation of the tax system with the intention of making its administration more efficient and tackling evasion.
The government will implement a National Plan of Saving and Rational Use of Energy which will be ordered by a presidential decree. President Leonel Fernandez received the proposals for the plan from the Director of the National Energy Commission, Ruben Montas and the Technical Secretary of the Presidency, Temistocles Montas, according to a report in Diario Libre. Details of the measures suggested in the plan were not disclosed. El Caribe reports that the decrees are to be expected in the forthcoming days and will regulate the use of energy in government offices and by the general population.
The Dominican government must receive more than US$302 million in loans to be able to finalize the deal with Spanish power company Union Fenosa, formerly responsible for two-thirds of the energy distributed in the DR, according to the Technical Secretary of the Presidency, Temistocles Montas. A report in El Caribe states that the deadline for the operation is in December. The money will be sought through international loans. He stated that if the current administration had not recognized the agreement signed with Union Fenosa during the past administration of Hipolito Mejia, problems could have arisen in the DRs relations with the government of Spain. The past administration bought back Union Fenosa's shares in the energy distribution companies in September 2003 in a move that was criticized by the PLD. Listin Diario reports that the government will save US$104 million after signing a memorandum of understanding with Union Fenosa for the re-purchase of the debt it had assumed with the Spanish company with the objective of improving the financial and operational profile of EdeNorte and EdeSur power distribution companies. The memorandum authorizes the Dominican government to re-purchase the debt from 1 September to 30 December this year.
President Leonel Fernandez will be the keynote speaker during this year's Dominican Week events scheduled for the United States. The annual event sponsored by the law firm of Russin, Vecchi & Heredia Bonetti seeks to promote business, economic, historical and cultural awareness of Dominican society in the United States. President Fernandez is scheduled to speak at the business lunch scheduled for Monday, 12 September at the US Chamber of Commerce in Washington, D.C. (To participate, contact jdieguez@amcham.org.do)
On the program of the 13th Dominican Week is an event in honor of Dominicans elected to office or appointed to work in the US government. Likewise, there will be business presentations at the International Finance Corporation, the Interamerican Development Bank and the InterAmerican Investment Corporation, and at the US Department of State. Also participating in the event again this year is Dominicans on Wall Street, which will have a presentation at Goldman Sachs, the Dominican American Chamber of Commerce of New York and the American Chamber of Commerce. For more information, see http://www.rvhb.com
The drop in the production of energy caused a 10.6% reduction in fuel consumption during the first six months of this year. According to a report in Diario Libre, the reduced demand for fuel is not due to a more rational use of petroleum derivates. Ministry of Industry and Commerce statistics indicate that imports of generation diesel dropped from 84.7 million gallons in January-July 2004, to 35.7 million gallons during the same period in 2005 - that is a 57.8% reduction. Imports of fuel oil, also for electric generation, dropped 49.5% from 154.7 million gallons to 78.1 million gallons. The 13.4 million gallon reduction in the consumption of regular gasoline can be explained by the increase of 17.2 million gallons in the demand for propane gas. This means that more and more vehicles are switching to gas technology.
District Attorney Jose Manuel Hernandez Peguero, set for today the auction of the Colibri helicopter owned by former army captain Quirino Ernesto Paulino Castillo, who is in custody in the US where he is facing drug trafficking and money laundering charges related to the seizure of 1,387 kilos of cocaine in Santo Domingo last December. The auction will begin at 11:00 am and the first bid is set at US$1.8 million. The DA said the transaction was approved by Belkis Elizabeth Ubri Medrano, Paulino Castillo's wife, as well as lawyers Felix Damian Olivares and Freddy Castillo Nieve. The helicopter is an Eurocopter, model EC-130b4, serial number 3781, blue and grey, and registered with number N160AE of the FAA in the US.
Only 24 hours after a small airplane crashed in Kilometer 9 of Duarte Highway when it was trying to land at the Herrera Airport (see DR1 Daily News 29 August 2005), another plane caused an accident in Bonao when it hit a high tension cable. After hitting the cable the small plane continued in air and is presumed to have crashed. Diario Libre reports that three minors suffered injuries apparently caused by the fallen cable. Yesterday, the Civil Aviation Department informed that the plane that crashed near the Herrera Airport had run out of fuel.
The Consular Section of the US Embassy is urging people interested in traveling to that country during the months of December and January to purchase their appointment rights in the forthcoming days. They state that appointments for interviews for non-immigrant visas are currently being programmed for November. A note from the consulate states that the public that is planning to travel to the US is recommended to plan ahead for their appointments, either for renewal or first-time visas. Appointments are secured by purchasing a PIN worth US$16.00 at any branch of Banco Popular and later calling the Visa Information Center at 809-200-3232. Due to the large demand, the consular section cannot change the dates of appointments already scheduled. Also, time may be saved by filling Form DS-156 online.
The Chief of Police, major general Bernardo Santana Paez, said yesterday that the Police are aware of a new modality being used by criminals who ride motorcycles in groups of three carrying guns and knives to steal vehicles from unaware drivers. According to a report in Listin Diario, Santana Paez warned that he will pull criminals out of their homes if need be, after stating that he knew who they were and where they live. He has instructed major general Rafael Guerrero Peralta, from the department of Preventive Police, to tackle the new system of vehicle robbery.
Equipo Espacinsular, directed by journalist Jose Luis Soto, announced their new website where they will publish news regarding the DR and Haiti. As informed in Clave Digital, the new site is of interest to individuals seeking information on bi-national relations, including the Haitian community here. Currently, it is in Spanish but soon it will also be published in French. Feedback and suggestions are being sought through a form on the site located at: http://www.espacinsular.org
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