2003News

No easy ride through Congress for 5% tax

The Listin Diario reports that the next legislative stage to impose the 5% tax on exports could be difficult. The Chamber of Deputies could pose a challenge to the controversial surcharge with the stiff opposition of PLD and PRSC deputies, as well as a PRD faction opposed to the levy. PLD spokesman Teodoro Reyes said the tax “would only serve to discourage exports and reduce the flow of dollars into the country, as well as creating more unemployment.” Reyes said that other sectors should not be made to pay the price of the government’s economic mismanagement. The PRSC’s representative said that the net effect of the 5% tax would be harmful for the country, especially the poor. The ruling PRD party’s Ramon Agromonte said the tax should be imposed, however, so that it is not just the people who bear the burden of the current economic crisis. Nevertheless, it appears that several PRD deputies plan to vote against the tax. The Chamber of Deputies has 73 PRD members, 42 PLD and 35 PRSC.