The government is considering levying a 5% tax on exports, in order to generate the funds needed to cover its policies of protecting banks in trouble and fiscal spending.
El Caribe reports that the new tax could produce RD$1.8 billion for the government in its first year.
To rationalize its case for imposing the new surcharge, the government argues that the export sector has reaped great benefits from the 100% devaluation of the currency.
Rafael Camilo, former technical secretary of the Presidency during the Leonel Fernandez administration, said that the 5% tax on exports would castrate any hopes for economic recovery.
He also said that a similar measure had been applied in 1984, when the government signed an agreement with the IMF during the Salvador Jorge Blanco government (PRD-1982-1986). The result was the decapitalization of the export sector and a ?2.1%
growth for 1985.
?If in the past half year, when tourism and the export free zone industries were in crisis regarding their sales compared to 2001, the state did not come to their rescue. Why now, when they are in a recovery period, should they be penalized?? he
asked.
Camilo feels the government should look internally for the money. ?What has happened is that the government has only committed to reduce spending by RD$1.2 billion,? he criticized, mentioning that the government has sufficient enough resources to
demonetize rather than increase taxes.
Camilo told El Caribe that the government does not want to curb its spending habits, but maintain a free hand for the presidential election campaign. Presidential elections are slated for May 2004.