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  1. #1
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    Default Electricity Costs Soaring....

    Now an almost 20% increase in 6 months time. Amazing little discussion anywhere to be found. In addition, the new proposed tax law changes by the President will ding you if you have a bunch of real estate in your name. Of course, you can change it to a Corporation where you will pay 1% on assets if no equivalent income. All in the name of benes for re-election. Enjoy!

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    Quote Originally Posted by AndyGriffith View Post
    Now an almost 20% increase in 6 months time. Amazing little discussion anywhere to be found. In addition, the new proposed tax law changes by the President will ding you if you have a bunch of real estate in your name. Of course, you can change it to a Corporation where you will pay 1% on assets if no equivalent income. All in the name of benes for re-election. Enjoy!

    Actually, these unpopular measures put a damper on the government party's (PLD) pretension on holding on to power in next years presidential elections.

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    Well if people think that all these measures are not going to have an adverse result to the economy in DR, then they are just fooling themselves. The change in the real estate tax structure is going to put a big dent into RE sales. Moreover, the electricity mess and petrol taxes are going to exacerbate the slowdown, but let's keep working on that re-election money from the IMF! Enjoy!

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    Quote Originally Posted by AndyGriffith View Post
    Well if people think that all these measures are not going to have an adverse result to the economy in DR, then they are just fooling themselves. The change in the real estate tax structure is going to put a big dent into RE sales. Moreover, the electricity mess and petrol taxes are going to exacerbate the slowdown, but let's keep working on that re-election money from the IMF! Enjoy!
    Be ready for rounds of sector wage increases.That is what will drive votes: tax the rich and give raises to the "poor" before an election...

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    And Leonel tried to "blame" the proposed tax increases on the 4% for education campaign. Very mealy-mouthed and creepy.

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    Quote Originally Posted by cobraboy View Post
    Be ready for rounds of sector wage increases.That is what will drive votes: tax the rich and give raises to the "poor" before an election...
    With what money? More loans from the IMF? The reason they are pegging petrol, electricity, real estate, gaming, tourism..etc..etc..is because taxation from income and spending has fallen through the floor. They can raise wages with loans, but in the end the increasing necessity for more and more debt and higher and higher taxation will shred the underlying economy.

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    Yes, the peso will continue to be devalued. Prices will continue to rise. Wages will also but never enough to keep up with inflation because it will be the main driver of inflation. Actually, wages should not raised so that inflation will not turn into hyper-inflation. Electricity rates had to go up. It is an IMF mandate as a precondition for further disbursements.

    The balance of payments is upside down. Their international reserves are down greatly because they were used towards the BoP. This was also done to prevent a massive collapse in the peso because the peso/dollar ratio was going to another dive in its long history of dives. We've been writing about this for over 2 years now, Cobraboy and myself, and the chickens are finally coming home to roost.

    But, this is just the beginning of tribulations to give it a biblical tone, LOL. There is so much pain ahead that these incidental issues are child's play for what lies ahead.

    I've been saying it for the longest. The DR is bankrupt, busted and dying a slow death. The DR is an insolvent entity being kept alive by IMF gratuities, WB freebies, remittances and whatever tourism dollars they still have.

    Have you noticed that plane tickets to the DR are more tax than ticket? For ex. from PR to DR is 80 bucks round trip but the tax is over 100. Thus, more tax than ticket!

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    OC, I guess we will just have to wait for Nals and Pichardo to show us how this is all really a positive for the DR. About the DR being first in something or other. Airline taxes, for example. Electricity rates, for another example. Largest raise in the minimum wage, for a third example.

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  14. #10
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    Quote Originally Posted by Onions/Carrots View Post
    Yes, the peso will continue to be devalued. Prices will continue to rise. Wages will also but never enough to keep up with inflation because it will be the main driver of inflation. Actually, wages should not raised so that inflation will not turn into hyper-inflation. Electricity rates had to go up. It is an IMF mandate as a precondition for further disbursements.

    The balance of payments is upside down. Their international reserves are down greatly because they were used towards the BoP. This was also done to prevent a massive collapse in the peso because the peso/dollar ratio was going to another dive in its long history of dives. We've been writing about this for over 2 years now, Cobraboy and myself, and the chickens are finally coming home to roost.

    But, this is just the beginning of tribulations to give it a biblical tone, LOL. There is so much pain ahead that these incidental issues are child's play for what lies ahead.

    I've been saying it for the longest. The DR is bankrupt, busted and dying a slow death. The DR is an insolvent entity being kept alive by IMF gratuities, WB freebies, remittances and whatever tourism dollars they still have.

    Have you noticed that plane tickets to the DR are more tax than ticket? For ex. from PR to DR is 80 bucks round trip but the tax is over 100. Thus, more tax than ticket!
    The taxes on the plane ticket are on the way out of DR airports. Unless you plan on taking a boat, this must do wonders for tourism in DR. A representative at AA told me these are the most expensive taxes on air travel in the world. LOL.

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