Electricity Costs Soaring....

AndyGriffith

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Mar 11, 2010
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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!
 
Jul 4, 2010
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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.
 

AndyGriffith

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Mar 11, 2010
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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!
 

cobraboy

Pro-Bono Demolition Hobbyist
Jul 24, 2004
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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!
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...
 

Chirimoya

Moderator - East Coast & Headline News
Dec 9, 2002
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And Leonel tried to "blame" the proposed tax increases on the 4% for education campaign. Very mealy-mouthed and creepy.
 

AndyGriffith

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Mar 11, 2010
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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.
 
Jan 3, 2003
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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!
 

windeguy

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Jul 10, 2004
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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.
 

AndyGriffith

New member
Mar 11, 2010
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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!
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.
 

DavidZ

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Aug 29, 2005
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www.vipcigartours.com
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.
The taxes and fees to leave are roughly double those to arrive. In "DR Logic" it kind of makes sense... "We welcome you here to come and spend money...when you're ready to leave, we'll hit you up one more time for good measure..." Or in Beach-speak: "Come inside...everything cheapie-cheapie...ok...you leave now? dame una propina!"
 

Criss Colon

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Jan 2, 2002
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Last Time That "PaPa" Was "In Charge",I did some improvements To My House!.

The DRpeso hit 56-1 to the US$!
I plan to do the same next year!
The coming financial collapse of the DR will surely lead to the election of "Hipolito"!
My income is in US Dollars,:classic:
I am putting aside,in the USA,as many as I can.
I think I will buy a few mare boxes of 12ga.for my "Mossburg" too!

What I don't get,is how the electric company,who raised the cost of electricity about 2 years ago,to reflect the cost of oil at $150 US a barrel,and NEVER lowered the cost when it dropped to $50 a barrel,can now say that they MUST increase the price,YET AGAIN" when the price is at $100 dollars a barrel?

Did you see that each space in the new UASD UNIVERSITY parking garage is 800,000 pesos EACH! That is about $1000 US!.When builder was critisized by another architect he said that the garage has"Four Elevators,A "sprinkler system,CCTV security,and some office space!".Te architect who was the critic,said that he built a similar garage at a private univ. for $500 dollars a space,withe the same features!
The new garage,was part of a "DEAL" financed by "Sun Land",of the now "Famous" Sun Land "Escandalo"!

It NEVER,NEVER stops!
But it WILL very SOON!

CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
 

TX2DR

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Mar 29, 2011
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What I don't get,is how the electric company,who raised the cost of electricity about 2 years ago,to reflect the cost of oil at $150 US a barrel,and NEVER lowered the cost when it dropped to $50 a barrel,can now say that they MUST increase the price,YET AGAIN" when the price is at $100 dollars a barrel?
That trick is universal... Airline Bag Fees was first sold as temp to offset fuel prices.
food prices... even drycleaners, once one gets a add on fee, or rate hike, all follow.
 

SKing

Silver
Nov 22, 2007
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The DRpeso hit 56-1 to the US$!
I plan to do the same next year!
The coming financial collapse of the DR will surely lead to the election of "Hipolito"!
My income is in US Dollars,:classic:
I am putting aside,in the USA,as many as I can.
I think I will buy a few mare boxes of 12ga.for my "Mossburg" too!

What I don't get,is how the electric company,who raised the cost of electricity about 2 years ago,to reflect the cost of oil at $150 US a barrel,and NEVER lowered the cost when it dropped to $50 a barrel,can now say that they MUST increase the price,YET AGAIN" when the price is at $100 dollars a barrel?

Did you see that each space in the new UASD UNIVERSITY parking garage is 800,000 pesos EACH! That is about $1000 US!.When builder was critisized by another architect he said that the garage has"Four Elevators,A "sprinkler system,CCTV security,and some office space!".Te architect who was the critic,said that he built a similar garage at a private univ. for $500 dollars a space,withe the same features!
The new garage,was part of a "DEAL" financed by "Sun Land",of the now "Famous" Sun Land "Escandalo"!

It NEVER,NEVER stops!
But it WILL very SOON!

CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
Man, don't get my hopes up!! I'm excited! I'm rich, beeeeeeeeotch!

SHALENA
 

the gorgon

Platinum
Sep 16, 2010
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criss colon states

It NEVER,NEVER stops!
But it WILL very SOON

grind to a halt is more like it. where is PICHARDO, when we need him ,to remind us that there is nothing untoward happening, and all of this is just a round of rosy developments?
 

Hillbilly

Moderator
Jan 1, 2002
18,946
502
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the supervising engineer on the parking garage was named Pichardo, hummmmm
Do you think??


Since the I teach young Dominicans, I like for them to read newspapers and learn about what is happening, since most haven't a clue.

The 17% wage hike for the MINIMUM wage earners was supposed to be a major conquest for labor...and the next week, and even before the wage hike enters into effect, they get whammed with the 8% electricity rate hike. But, and this is important, most of them don't pay for electricity anyway...

But, the taxes in this latest " fiscal reform" are going to hurt us and help some few get even richer. The people with the sports banks for example will become even bigger money launders, and the two biggest just happen to be legislators in this Congress. All of us with loans, mortgages, plastic, will be seeing bigger fees. So we are screwed coming and going.

Of course the politicos are saying that this was forced on them by the IMF, but all the IMF wants is to balance the budget or come close...but the spending and the corruption attached (Like the 800,000 pesos parking sports???) just keep coming...

I have to agree with O/C..the doo doo is going to hit the fan..and sooner rather than later..

HB
 
Feb 7, 2007
7,538
326
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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.
Not true by more than 50%, The taxes are high and super-high compared to domestic US travel, but are on par with Cancun, Mexico.

see the thread here
http://www.dr1.com/forums/airline-info/115493-airline-costs-why-theyre-so-high-2.html