September’s tax collections were 7% less than those of August, says a report in El Caribe today. The newspaper indicates that the decline does not appear to be related to the regular cycles of the economy, given that in September 2003 the tax department reported an 11.7% increase (up RD$416 million) in tax revenues for September compared to August 2003. This year, taxes paid in September represented RD$362.6 million less than those paid in August. The newspaper does not, however, specify whether last August was an extraordinary month for collections, given the fact that it marked the end of a government administration, which could have an impact on the analysis when compared to 2003.
Secretary of the Presidency Danilo Medina said on Sunday that the Fernandez administration was handed a country with a budget that was already consumed for the next four months and with enormous debts. The Tax Department has indicated that several large companies had advanced the Mejia administration their tax payments that were promptly spent prior to the government turnover and thus affecting the present cash flow of the Fernandez administration.
According to the report in El Caribe, tax collections in September were up 21.66% compared to September 2003, but the increase is not sufficient to compensate for the 48% inflation accumulated over the past 12 months.
In the past nine months of the year, the government has collected RD$45.8 billion, or 84.5% of what it had projected for the entire year.