The Ministry of Finance, in an advertisement in today?s newspapers, states that the government is fulfilling its commitments under the Pact for Stability and Economic Development signed with National Council of Business (CONEP) in December 2002. In signing the pact, the government agreed not to increase any taxes without consultation with the business sectors. With the announcement, however, of a new 10-percent surcharge, to be excised on all imports except food, medicines, raw materials and capital goods, the pact?s value is being called into question. The government defends its actions by insisting that the surcharge is but a transitory measure devised to curtail the devaluation of the peso and restore the exchange rate to levels that reflect normal proportions of supply and demand. The government says that if the surcharge generates new revenues, it would remove the money from circulation or have it used to subsidize the cost of propane gas.
The government feels that the measure will not affect national productivity or the prices of the most basic essential goods, such as food and medicine, as these are exempt from the surcharge.
The Diario Libre estimates that the 10-percent surcharged, ordained by Decree 139-03, could mean RD$470 million in additional government revenues if the present import levels are maintained.
Nevertheless, establishing taxes by decree is a direct violation of the Constitution, which appoints Congress as the only body of government authorized to mandate taxes.