Politics, rather than technical matters, is likely to call the shots in the tax reform?s passage, in the opinion Franco Uccelli who reports on the Dominican Republic for the Bear Stearns brokerage firm. In his comments released today, he mentions the concerns of Dominican legislators regarding prospects for swift congressional approval of the fiscal reform plan.
He reports that on 22 June, outgoing President Mejia and incoming President Fernandez agreed that a bipartisan team working in consultation with the IMF would draft a fiscal reform proposal and have it ready for Mejia’s review by 10 July. Mejia would in turn have until 15 July to evaluate the proposal and submit it to Congress for consideration.
But, he says, that the trouble is that the current regular session of Congress is scheduled to end on 27 July, which would give Congress only 12 days to review and approve the reform proposal.
Even if the Constitution affords Mejia the power to extend the current legislative session until 15 August ? one day before the Fernandez administration is to assume power ? he comments that certain members of Congress have expressed concern that even such an extension would not allow them enough time to study the proposal due to its complex nature.
Says Uccelli: ?We believe that if the bill is in Congress by 15 July, whether it is approved before Fernandez is inaugurated will depend on the will of the DR?s political establishment to make things happen, and more specifically on Mejia’s willingness to use whatever political capital he has left to sway his congressional troops in favor of the bill’s approval.?