The timing is off, business consultant Emam Zadé Frederic Emam Zade told El Caribe newspaper. He says that while the economic reforms are in general positive, the timing couldn’t be worse for the tax bills promoted by the Mejía administration. "One of the worst moments to increase taxes is when an economy is in recession, as that of the DR is for external reasons," said the economist from the University of Chicago. Emam Zade was in charge of trade negotiations during the Fernández administration. He said that the government instead should cut taxes to revitalize the markets and kick-off economic growth again. Emam Zade proposes a transition program. He said when economic growth picks up again, then tax pressure can be increased. He proposed to approve the economic reforms and tax bills so that these can be applied in a gradual manner-in a logical sequence that is coherent and in solidarity with the real economic situation of the Dominican population. "If during the 1996-1999 period the previous government achieved one of the highest real growth rates in the world, while having one of the lowest tax levels, without having increased taxes and could achieve 80% in import tax collections, while the Real Gross Domestic Product grew 27.5% at a national level and 21.4% in per capita terms, why increase taxes?" he said. "The government should be thinking first of the pockets of the people, and then about the pockets of the government," he told the newspaper’s reporter. He forecast that if taxes were increased, it would result in an impoverishment for the general population. He mentioned that purchasing power will decline at a time when the country is already withstanding the efects of the shock of the high petroleum prices. Emam Zadé forecast that production will also decline and the increased taxes will have the effect of further depressing the economy. Emam Zadé maintains a question and answer forum on Dominican business at http://www.dr1.com/business/board/index.cgi
