The President of the Chamber of Deputies, Alfredo Pacheco, announced yesterday that tax reform bill would go to public hearings as from 26 September. Pacheco stated that the bill would not be approved as sent by the Executive Branch, and assured that the Deputies would be examining it in depth. He insisted that the highest tax load should be placed on the wealthier. The bill is currently being analyzed by the Finance Committee after which it will go to public hearings where all sectors - business, tourist, agricultural and industrial - will be able to present their views on the reform. The government is seeking that the tax reform will collect RD$30 billion annually to compensate for the reduction in tariffs that will take place once DR-CAFTA comes into effect.
The Dominican and Brazilian governments signed a statement of intent yesterday, establishing mutual cooperation in the development of ethanol production and use techniques. According to El Caribre, the document was signed by Foreign Relations Ministers Carlos Morales Troncoso and Celso Amorim, in Guatemala, after the conclusion of the Summit of Heads of State and Government of the members of the Central American Integration System (SICA). Morales Troncoso said that the agreement is a transcendental measure that shows the government's firm commitment to using other types of fuel as a way of tackling the high costs of petroleum. The statement of intent stipulates that the two countries can establish mechanisms with the public and private sectors, and international and non-governmental organizations, for the implementation of technical cooperation in ethanol production.
The director of the Presidential Office of Information Technology and Communication (OPTIC), Domingo Tavarez, claimed yesterday that the Dominican Government website project will not be financed by the Inter-American Development Bank (IDB) as has been stated in some quarters. That is why he did not keep to the IDB regulations, and the tender was therefore carried out according to the regulations established by the government, which is going to provide the resources for the project. During a visit to Listin Diario, the official stated that the contract issued in favor of Microsoft Dominicana, who presented a proposal of US$5.9 million, has not been over-valued or over-calculated, but rather studied in accordance with a reference budget of US$10 million. He insists that the IDB's claims that the rules agreed upon with the government in the tender process for the Citizen's Services website, do not apply in this case. The tender process was suspended by the National Ethics Commission presided by Jose Joaquin Bido Medina, who recently explained that the suspension was due to a request from the IDB, which is demanding the compliance with certain rules in all projects where it has made investments. Tavarez believes that the IDB was acting under the assumption that the OPTIC was using funds from the Executive Branch Modernization Program (Pro-Reforma) which is financed by the IDB. This issue has been the subject of much controversy, having caused the resignation of long-time PLD leader Gustavo Montalvo from the Ethics Commission.
The National Association of Hotels and Restaurants (ASONAHORES) says that the Director of the Tax Department, Juan Hernandez, is wrong when he claims there is no differentiated VAT (ITBIS) for the tourism sector in other countries. CICOM reports that the organization pointed out that in the Caribbean region, Jamaica, Bahamas and Mexico (the Maya Riviera in the state of Quintana Roo) apply a different VAT, putting the DR at a disadvantage and that this has started to hinder future investment. The Executive Vice President of ASONAHORES, Arturo Villanueva, explained that the VAT rate in Mexico is 15% whereas only 10% is charged in the tourism sector. In the Bahamas, VAT is 6% but for tourism it is only 2.4% during the high season and 1.8% in the low season. The generalized VAT in Jamaica is 15% but the tourism sector only pays 5.9%. And recently, the Chamber of Deputies of Mexico passed a reform that would reimburse VAT to foreign tourists who make purchases in Mexico before going back to their country. This measure, which will come into effect on 1 July 2006, has the intention of fostering and promoting tourist activity. A lower VAT for the tourism sector is not exclusive of the Caribbean region. At least 12 European countries with a high impact of tourism use this system to maintain competitiveness and avoid the export of taxes.
The Dominican Export Lobby (LED) is demanding a national agenda that would allow Dominican exporters of goods and services to compete with certain possibilities of success within the DR-CAFTA agreement, which it supports. The large Dominican exporters believe the proposal in the Chamber of Deputies is near-sighted as it does not face the reality experienced by the leading productive sector in the Dominican Republic and, should it be approved as is, it would lead important sectors such as tourism and agribusiness towards bankruptcy. Specifically, the LED is requesting 0% rate Income Tax (ISR) for all exports of textiles, fruits, produce, industrial and mining goods (whether from a free zone or not) at least until 2010, stating that this is a privilege that has been agreed upon in favor of the DR after the intense negotiations at the Doha Round within the World Trade Organization (WTO). Also requested are 0% VAT for the export of all services, and the abolition of Selective Consumer Tax (ISC) for goods considered "luxury items" but that in reality are basic goods for the hospitality sector and tourist services offered as complementary to golf courses, theme parks, underwater museums, marinas and ports. They are also requesting the implementation of a support program for Dominican agriculture producers similar to those existing in other DR-CAFTA countries, to be able to act in equal conditions. The immediate reduction of the government payroll related to the cooperation for development of exports and a simplification of the myriad commissions, departments, centers and offices formally in charge of fostering exports are also requested.
The lack of sufficient qualified personnel to look after the radar service in Las Americas, Punta Cana, Barahona, and Puerto Plata airports is causing difficulties for the effective control of flights. The case of the airplane that landed and was later burned near La Romana is an evidence of this deficiency. Diario Libre obtained a technical report that states that the lack of personnel causes the radar service to be active from 7:00 am to 11:00 pm, leaving the early morning hours without surveillance, making these hours vulnerable to the incursion of illegal flights. The Civil Aviation Department admits that the radar centers in Barahona, Punta Cana and Puerto Plata do not have early morning personnel on duty. However, Assistant Director Ivan Vasquez stated the service is offered from Las Americas airport at that time.
The Banco de Reservas has announced that as of today it will have sufficient US dollars to satisfy market demand at a rate of RD$30.59 to one. The foreign currency may be purchased at any of the 126 offices in the country. Banreservas made the announced through a press release saying its clients can purchase dollars for the payment of credit cards and imports. The Central Bank reported that at close of business yesterday the average pondered rate of the US dollar was RD%30.50 for purchase and RD%30.70 for sale, representing a reduction of 25 and 80 points respectively. This has been caused by the lower pressure on the market as the Dominican Petroleum Refinery (Refidomsa) is obtaining the foreign exchange it needs elsewhere.
Judge Pilar Rufino Diaz of the National District Second Court of Instruction, has sent former Bancredito executives Maximo and Manuel Arturo Pellerano, Hector Bienvenido de Castro Noboa, Raisa Margarita Gil Pelletier and Felipe Mendoza to criminal court without applying coercion measures against them. The judge was acting upon several suits presented by owners of commercial papers purchased at the collapsed bank.
The Consul General of Spain in the Dominican Republic fired officials for "having been spying on all his activities". Jorge Sanchez Rodriguez found out that his employees were also National Investigations Department (DNI) agents. The former employees told Diario Libre that they were holders of DNI identification cards but they were "honorary" members of the Department, without a salary, or the obligation of offering "services". They claimed to have used the ID cards for protection only. "After several investigations we have been able to prove your connections to an intelligence department of the Dominican State, specifically the DNI," says the letter sent to Olga Agustin Camara (a Spanish national), Primitivo Serrano Florentino and Hector Bueno Espinal (Dominicans), when they were fired. The accusation regarding alleged irregularities and the discontent caused among Spanish and Dominican visitors to the consulate were based on the embarrassing way that the personnel was fired and the "privileges" that were withdrawn from Spanish citizens after the arrival of Consul Sanchez Rodriguez. The Spanish Ministry of Foreign Relations investigated the consulate last month after complaints from the Council of Spanish Residents and embassy employees, who also stated that there were irregularities in the tenders to fill work vacancies and the mistreatment of visa applicants (see DR1 Daily News 14 September 2005).
During the first eight months of this year, 1,719 violent deaths - some of them in shootouts with police or military agents - were registered. In August alone there were 206 violent deaths. The Attorney General's office reports that 90% of murder victims were men and 10% were women. Also, there were 45 victims of shootouts with police on duty in August - and a total of 345 throughout the year. Between January to August 2005, 561 people died in robberies, assaults, fights, drug-related events, shootouts, and other yet unsolved incidents. Of those, 81 were women, 11 dying in August alone. Last month the homicide rate reached 21.23 for every 100,000 inhabitants.
There are several things to consider when trying to save energy at home. A report in Listin Diario recommends to iron only when strictly necessary, to alternate the use of the television and the radio, to use low-wattage or fluorescent light bulbs, to use the washing machine only once a week, to cut down on the use of air conditioning, to avoid overusing the stove and other simple options as basic points to save energy and lower your expenses. These alternatives are some of the conclusions from people worried about the DR's future in terms of energy, who have decided to advise the public on how to bring about savings. Energy saving expert Ramon Urena and psychologist Salvador Adames explain that acting conscientiously is the key to energy saving and that it is important to teach youngsters to do so as well.
An exhibition of engravings belonging to the Louvre Museum in Paris opens to the public today at Museo Bellapart, according to Listin Diario. The exhibition is called "Chalcography of the Louvre: the classical legacy interpreted by contemporary artists" and consists of reinterpretations of original engravings from the 18th to the 20th century by 27 contemporary artists from France, Belgium, Germany and the United States, using diverse engraving techniques. Chalcography was created by the French government in 1848 to promote engraved reproductions of works kept at the famous Parisian museum. In 1989, new commissions from living artists began again, giving a new impetus to this practice which has allowed different creators to "reinterpret" the classical legacy. Pascual Torres Guardiola is the curator of the exhibition, which is being presented under the auspices of the Alliance Francaise, the French Association of Artistic Action and the French Embassy in the DR. It will be open to the public in the temporary exhibits hall of the Museo Bellapart until 15 October, Mondays through Fridays, from 10:00 am to 6:00 pm and Saturdays from 9:30 am to 12:00 noon.
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