The package of new taxes and fiscal modifications that the press has denominated the "paquetazo" received the approbation of the Chamber of Deputies yesterday following a tumultuous series of parliamentary skirmishes, and some high-level bartering. The Chamber version of the "paquetazo" comprises two bills that are the same as those previously ratified by the Senate, which were approved without changes. These provide for; the pre-payment of corporate taxes at a rate 1.5% per month; an increase from 8% to 12% in the ITBIS (point-of-sale) tax on manufactured items and services; an extension of the ITBIS tax to professional services; a 5% tax on hotel rooms; a 30% tax on rum; a 23% tax on beer; and a 40% tax on whiskey. The entire block of PLD Party Deputies opposed the measures, while the PRSC and minor party Deputies went along with the PRD majority in favoring them. The PRSC votes were assured as a result of a "gentleman’s agreement," signed by President Hipolito Mejia, former President Joaquin Balaguer, and the President of the PRD Party, Hatuey De Camps. The agreement, which was reproduced in the morning newspapers, provides that upon receiving the "paquetazo" legislation from Congress, Mejia will submit legislation rescinding the prohibition on the import of motor vehicles more than five years old, and lowering the ITBIS tax on publicity from 12% to 6%. Having been left out of the brokering, and having had a series of proposed amendments rejected, the PLD block attempted to stall the legislation by invoking Article 30 of the Constitution, which provides that a bill that has been introduced as "urgent," requires a two thirds majority for passage. The "paquetazo" legislation had been labeled "urgent" when it was presented. This maneuver occasioned much shouting and gesticulation, and the legislation failed of a two-thirds majority on its first reading. However, the Chamber President, Rafaela Alburquerque, took advantage of a lull in the disputations (while some Deputies were in the bathroom, according to Listin Diario), to present the bills to those present for a second vote, which provided the favorable numbers.
