Hoy newspaper?s economic editor, Mario Mendez, reported on Saturday that business representatives are concerned that during the meeting of Technical Secretary of the Presidency, Carlos Despradel presented a report on ?a model government? that should not carry out any measures for change and that the economic adjustments needed should be borne by the private sector. Despradel said that a financial hole of RD$10 billion will be repaired by the government, which will seek this money through administrative tax measures. Among these, a 3% tax on banking transactions is being considered, as well as an increased charge for driver license plates, an increase in the tax on exchange transactions, as well as an increase in the tax on petroleum products and a possible hike in the toll booth tax. What concerned business circles, Mendez said, was that the representative for the government did not mention any governmental measures to reduce public spending or any changes to the government?s financial policy.
Reportedly, Despradel said that the mission of the International Monetary Fund concluded that the country does not have problems with its public finances, its national accounts, nor its balance of payment.
Business sectors demand that the government reduce its spending, abstain from imposing new taxes on production operations, and cut its burgeoning payroll. Lisandro Macarrulla, president of the Association of Industries of the Dominican Republic, as reported in Hoy newspaper, urged that the government revise its monetary policies and refrain from employing restrictive measures that have only proven to increase the cost of borrowing, without any effect on the exchange rate.