Government to slap 5% tax on exports to raise money!!!

Well, a train-wreck is coming, we all know that, don't need no PHd to know that! Lets see what crisis is conjured by the government to divert attention from its economic mess.

A fatal economic brew is coming into being: High interest rates + high inflation + higher taxes = the never-ending cycle. The only way to stop it for the government to cut its expenditures dramatically, like by 50%.

5% Tax on exports will make free zone companies look for greener pastures. Not only will the government get nothing, they will certainly lose much of what they are getting now.

Also, this was not the 'free zone deal' - and the business will call them on this. I say let them try. The import tax did not work out, the export tax will not work at all. I think while they are trying to dig themselves out of a hole, they are just digging in deeper. This will certainly lose them the election.

They try and attract industry with free zones, and then they want to tax them. These folks don't know anything about business. They have not seen business backlash. They will see a business exodus as never before, to other climates where governments understand who the goose is that lays the golden egg.

OK, now, what I really want to say, I cannot say on a public forum. Bloody Hell!

Some days I read the news and wonder what actually goes through peoples heads. I can just imagine officials deciding economic policy with one of those decision makers that you spin.

Just like you Chris, sometimes I just want to post what I "really" fell towards some people and certain issues. Then I'm reminded of the men in dark glasses.

Maybe we should have one of those devil polls? Nah, look what happened to the radio station in Pib's home town...

Now I've heard it ALL!!!!

Of all the backward, stupid, and un-intelligent moves by the Hipolito government and Senate(?), this maneuver takes the cake.

Any first year economics student can predict the outcome of such a fiasco.

Instead of really trying to solve the countries economic and financial problems (caused by stupidity such as this proposal) the so-called elected representatives are digging the hole deeper in their desparation and ineptness to that end.

Seldom have I seen such a random rambling of stumble bums who are supposed to have a modicum of common sense in governing through law.

I was about to enter into a business here. One of Import/Export activity. Instead, I'll put that company on hold for the time being and watch developments unfold. I am of the opinion that to continue with my original plan would be a stupid move on my part in the present unsettled environment.

Hopefully, the Dominican Public will see through the political maneuvering taking place and vote the whole outfit out of office.
And, in addition, I hope the IMF people will finally open their eyes to the fact that the government as a whole is rife with the singlemindedness of a rattlesnake, is totally incopetent to govern and withdraws the offer of a bailout until such time as a competent government is in place.

Texas Bill

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This just blows my mind. Will the last one out please turn off the
lights! Ooopps! they are already off!Another sad day for the DR.

I thought after a nights sleep I would be able to look at this in a clearer fashion. But I can't. It is just gross stupidity!

On a more positive note, we do live in the Garden of Eden - and every Garden of Eden simply has to have snake. And guess what one does with a dangerous snake in your garden - you beat its head in with a shovel!. The snake in this parable certainly represents the Devil. So, it's not necessary for a Devil Poll! We already know the answer. Let's not risk the ire of the men in the dark glasses.

Disclaimer - To the environmentalists out there, I don't really beat real snakes to death! This is just a parable born from the inability to verbalise my utter disgust at this incompetence!

Texas Bill, more seriously, I doubt if this 5% tax will become reality. Don't let the apparent unsettled climate put you off - somehow once you are established, business does function and it happens - sometimes I wonder why.

Well, now it`s official. Starting this saturday, all exports will have to pay to the goverment 5%. I never seen that a goverment that wants to increase the exports, an puts a tex on them. What a great job is doing CEDOPEX...

Eat my Words!

Now I have to eat my words. I never thought this piece of stupidity would become a reality.

Anyone wants to talk to me off-line on the subject of 'favorable' commercial invoices?. Any other businesses out there that are thinking this way?

Chris, that really includes the free trade zones too? How can it be a free trade zone if you have to pay an export tax?

Obviously Hippo is getting economic theory from Al Gore and the gang. "Hey let's get this economy moving again! Raise the taxes!"

I trully doubt that Free Zones are included (that would be not only stupid, but also suicidal).

I think we underestimated the stupidity of this people.

I've sent the question to our Attorneys and should get an answer soon whether Free Zone companies are included or not.

I don't see anywhere where they are excluded specifically. I'll also post a question for Fabio in the legal section.

I wonder what Hippo promised to the farmers to get them to agree so readily? Or is this just favorable reporting?

Oh Man! All I wanted to do today was to get some work done and then go down to the beach for sunset and drink and eat something interesting.

Let us know what you find out. I can't believe they could do that. Don't you have some contract or guarantee when you go through all the trouble and expense of setting up shop there in one of those zones?

P.S.
All three kids, and both sister-in-laws are going away to Esperanza for a few days. Just me and Alba. When you hit the beach let us know and we'll join up with you if you like. Someone needs to rip me away from this damn computer or I'll be here all week!

Chris said:

I wonder what Hippo promised to the farmers to get them to agree so readily? Or is this just favorable reporting?

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I didn't agree and no farmer in their right mind would agree to that!

Let them see the results of this quick fix of theirs. I can tell you, It ain't going to be too pretty......

Que pique!

XanaduRanch said:

Let us know what you find out. I can't believe they could do that. Don't you have some contract or guarantee when you go through all the trouble and expense of setting up shop there in one of those zones?

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Bad answer but I don't really know - Lots of contracts and paperwork signed. But I guess the government sets up the rules and regulations for the zones, and they can change them if they like. This is truly an easier question for the Lawyers to answer. The Zone management will also understand this clearly, but I'd rather have a legal answer on this one. We are shipping next week again and I would like to have my ducks in a row.

I'll let you know when this computer lets me off - and we'll chill on the beach tonight! - anyone else in Cabarete/Sosua want to join us?

Killing the goose for eggs

Pib said:

I trully doubt that Free Zones are included (that would be not only stupid, but also suicidal).

I think we underestimated the stupidity of this people.

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I'm still trying to get in touch with ADOZONA and CEDOPEX to verify if Zonas Francas are indeed included.

If so, basically any company with profit margin less than 5% might as well shut their doors. And I know many industries do not have 5% profit margin these days.

Talking about killing the golden goose to get her eggs !!

My Dominican invention for "l?derazgo" -> "TIGERAZGO" !

Our Attorneys report that they don't know at the moment, but they expect that Free Zones will be included. The answer is wait! No-one knows...

With the bucket of worms just opened, I thought I'd go fishing. Then I remembered that the rivers and lakes are all fished out centuries ago.
What Next Dick Tracey!!????????????????
Why don't we call all this to the attention of the IMF, World Bank, etc.,etc. and encourage them to withdraw their support loan, allowing the system to founder and die of natural causes along with the politicians who caused it all??
Any comments/suggestions???????????
Texas Bill

Texas Bill said:

Why don't we call all this to the attention of the IMF, World Bank, etc.,etc. and encourage them to withdraw their support loan, allowing the system to founder and die of natural causes along with the politicians who caused it all??
Any comments/suggestions???????????
Texas Bill

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I e-mailed my concerns to the IMF. They acknowleged my e-mail and promised to provide an informed answer. I aslo e-mailed US Representative whose district covers a heavy Dominican population. The politician has yet to respond.

I WILL get some answers from these two bodies.