2003News

President Mejia says 5% tax stays

President Hip?lito Mej?a threatened to send the surcharge
on exports of goods and services to Congress, increasing, however, the
originally proposed 5% to 10%. He expressed his confidence that Congress would
pass the tax and told exporters that it would be eliminated if the exporters
agreed to sell their dollars to the government at a special rate of RD$24 to
US$1.
The National Council of Business and the National Association of Hotels &
Restaurants have requested the opinion of the Supreme Court on the matter,
deeming the surcharge illegal as only Congress has the right to levy taxes. The
business groups feel the government has assessed the entire burden of its
supplemental revenue collection to the private sector, instead of cutting its
own spending. President Hip?lito Mej?a seeks to be reelected in 2004.