The president of the Herrera Industrial Association, Antonio Espin spoke up for local business expressing his concern that the government is focusing on measures that are increasing marketing and production costs for business. "While the politicians say they are working in favor of national development and to confront poverty, laws are being enacted to destroy the productive sectors, and actions taken that reduce the capacity of companies to compete," said Espin, one of the few local businessmen who has spoken up against the government. He said there are two ways to eradicate poverty: education and production. "It is necessary to provide incentives for producers, not costs that create distort competitive advances that these may have," he told Hoy newspaper. Among new measures implemented by the Mejia administration that were criticized by Espin is the passing of the ruling to implement Law 374-98 that creates a pension plan for mining and metalworking companies. This is rejected by the affected sectors because the pension plan has a 35% cost factor for management of the fund. Also the maintenance of the 5% exchange commission when Mejia had committed to eliminate this once fuel prices were adjusted. Also the new 1.5% monthly tax on gross sales, the increasing from 8 to 12% of the value-added tax. Espin said that business sectors are hurting at the 28% prime interest rate, passing of wage increases, and the increase of values for Customs House clearance.
