| Daily News - Tuesday, 21 November 2006 |
The final version of the fiscal reform package has been handed to President Leonel Fernandez so he can review it and decide on any last minute changes before sending it to Congress for approval. Finance Minister Vicente Bengoa said in Hoy newspaper that the package that was given to the President does not include any substantial changes. Bengoa added that the team working on the project has removed the 10% tax on insurance and replaced it with the single 16% ITBIS (VAT) tax. Bengoa says that butter, chocolate, yogurt and 400 other food items are on the list for 16% ITBIS tax, but that the President would have the final word on whether or not some items get taxed. The taxation of basic family goods has led to strong criticisms from both national and international quarters. United Nations representative in the country Nicky Fabiancic has called for equality when deciding the scope of the reform, so that the gap between the rich and the poor doesn't continue to grow.
Finance Minister Vicente Bengoa traveled to Washington yesterday in order to sign a loan agreement with the Inter-American Development Bank, according to Diario Libre. Once the loan is signed by Bengoa, Congress must approve the loan, which has a total value of US$150 million. The executive power would like the process to be completed before December so that the first part of the loan, totaling US$50 million, can be disbursed. The loan will be used for budget support, aid to health, education, and reform of the public sector.
Government spokesman Roberto Rodriguez Marchena left the position yesterday making it clear he was joining the former Secretary of the Presidency Danilo Medina's campaign for the PLD candidacy in the 2008 presidential election. The position that Rodriguez Marchena occupied within the Presidency was created especially for him by President Leonel Fernandez. Rodriguez shared his role with Rafael Nunez, the presidential press secretary. Rodriguez Marchena is quoted in Diario Libre as saying that he made a promise to Danilo Medina in 1999 and that he is now fulfilling that promise. Diario Libre highlights that the move is seen to reflect a potential split within the party, and a calling for political adhesions to be defined. The separation of Medina from the Fernandez administration comes at a difficult time when the President, who has always enjoyed favorable ratings and support from the public, is now under attack from sectors who call for more efficient use of government revenues instead of more taxes.
The tourism industry has come out staunchly against the reform, as has the private business sector. Luis Lopez, president of National Association of Hotels and Restaurants (Asonahores) speaking on a special program, "Let's talk about tourism," said that the reform would have an adverse effect on the tourism industry because most contracts are negotiated a year in advance, and thus the increase in costs cannot be passed onto the consumer. Lopez also complained about the fact that the 5% tax on hotel rooms was removed earlier in exchange for the 16% ITBIS (VAT) on the sector, which the President promised to reduce to 10% by 2007. But now on top of the 16% ITBIS tax there is the 5% tax on hotel rooms.
An event held last night for the three major private business groups failed to convince the business sector about the need for more taxes. Elena Viyella, president of the National Council for Business (Conep) said that the only thing that came out of the two-hour meeting was there would be another meeting, with the IMF, to discuss the matter. Viyella explained that no one in the private sector accepts the need for more taxes, and has continually urged the government for more fiscal responsibility if they want to get more money.
More details of the proposed plan for a loan that will enable teachers and employees at the UASD University to buy new "jeepetas" have been announced. Diario Libre reports that the amount loaned by the Banco Nacional de la Vivienda will exceed the RD$500 million mark, and that the vehicles will be bought from car dealers Santo Domingo Motors and Viamar. The vehicles will be sold for 40% less than their actual market value and university employees will be eligible for the discount. Diario Libre adds that there is also the possibility that these same employees could buy homes through financing from Banco de Reservas. Innovating, the university plan will also separate banking interest from the loan taxes, making the deal even more attractive to the already privileged employees of the heavily subsidized state university.
Labor Minister Jose Ramon Fadul is quoted in Hoy as saying that President Leonel Fernandez is considering an increase in public workers' salaries, if the economic situation is considered to be right. Fadul says that if by 29 November the private sector has not presented an offer for salary increases for non-sectorized workers, the National Salary Committee will begin the conversation. Fadul said that the President has been making estimates, but didn't provide any further details. The current minimum salary for larger companies is RD$6,400 per month.
According to El Caribe newspaper, National Treasurer Ruben Pena has explained that as from next year the government will emit all paychecks electronically, and that this will save them an estimated RD$2.5 billion. Pena stated that the government currently issues 85% its checks electronically and said that the plan is to phase out paper checks completely by next year.
The Support Program for State Reform and Modernization (PARME) has announced that they will be offering training programs for skills development in the area of forensic science, with the help of the European Union. The organization informed that the workshops would help support the National Institute of Forensic Science (Incaf) and that the Attorney General's Office will also be supporting the project. The workshop hopes to train staff in the preservation of evidence in the case of violent murders or where foul play is involved. PARME has informed, through Listin Diario, that 30 doctors from Incaf will attend the first workshop.
District Attorney Jose Manuel Hernandez sent to the Attorney General Radhames Jimenez Pena a report with evidence of judge complicity with those accused of drug trafficking. Report 8943 was prepared after the Supreme Court of Justice requested proof of alleged complacency of judges. As reported in Diario Libre, the report contains more than 100 sentences that state prosecutors consider favor the dealers. It also mentions five examples of eight cases where accused dealers received benevolent judgments.
Grupo Leon and the US-based tobacco conglomerate Phillip Morris International have finished their 37-year business partnership. According to Hoy newspaper, Leon Jimenes, the country's largest tobacco producer, will no longer be in the cigarette production market (Nacional and Marlboro cigarettes). Grupo Leon will continue manufacturing Aurora brand cigars. In the divesting, it was agreed that Grupo Leon will continue with the Presidente beer production through the Cerveceria Nacional Dominicana (CND). Statements about the company's restructuring say that the move will allow Phillip Morris to continue selling cigarettes, where they have strength, and will allow for Leon Jimenes to continue developing the market for beer and cigars.
In related news, the CND has announced that they will begin exporting their Presidente Light brand to Miami, Florida where Presidente beer has been on sale since 1991. The brand was placed in the southern Florida city where over a million boxes of the beer brand have been sold. Diario Libre reports that exports for this company grew by 12.3% between January and October this year with the placement of 1,870,000 boxes of beer sold in 11 American states, 13 Caribbean markets and 4 European nations.
The Permanent Commission for Patriotic Anniversaries (CPEP) has launched a new exhibition commemorating the war for the restoration of Dominican Independence. The exhibition is being held at the Ave. Venezuela park. Listin Diario writes that the exhibition will be up until the 20 December, and many other similar exhibits commemorating those events will be displayed around Santo Domingo.
Author John Fleury has published a new book about the life of the Virgin of Altagracia. The book, Nuestra Senora, la Virgen de la Altagracia (Our Lady the Virgin of Altagracia), was launched yesterday at a ceremony at the House of the Annunciation. The book, which was presented by Cardinal Nicolas de Jesus Lopez Rodriguez, examines the reasons why the Virgin of Altagracia is beloved by the Dominican community and ventures all the way to the colonial era to determine these reasons. The Virgin of Altagracia is the protector saint of the Dominican Republic and she is celebrated on 21 January each year. El Caribe newspaper reports that one in every 12 Dominicans is named Altagracia, in honor of the Virgin, and that every year more than 800,000 people make a pilgrimage to the Basilica of Altagracia in the city of Higuey. Fleury said he was motivated to write the book because he found there was no single definitive source on the Virgin.
Despite enjoying one of the best seasons in recent history, Dominican Albert Pujols lost out in the MVP race to the Philadelphia Philly star Josh Howard. Also, David Ortiz and Neifi Perez, who have recently arrived in the country, announced that they would not be playing for their team, the Leones of Escogido in this season's Winter Baseball tournament. Both players cited previous commitments and fatigue as their reasons for not playing.
Standings
| Team | W-L | Avg. | Games Behind |
| Licey | 18 - 9 | .667 | - |
| Gigantes | 16 - 11 | .593 | 2.0 |
| Aguilas | 15 - 12 | .556 | 3.0 |
| Estrellas | 12 - 15 | .444 | 6.0 |
| Escogido | 11 - 16 | .407 | 7.0 |
| Toros | 9 - 18 | .333 | 9.0 |
* Estadio Quisqueya 7:30pm - Gigantes vs. Escogidos
* Estadio Cibao 8pm - Azucareros vs. Aguilas
* Estadio Tetelo Vargas 7:30pm - Estrellas vs. Licey
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