The IMF does not like the way the DR handles tax exemptions for imports, particularly on industrial machinery. According to the Listin Diario, the IMF feels that these exemptions should not exist when there is a fiscal deficit in public finances. This latest observation came as the Dominican government was negotiating with the IMF and the Customs Office announced a 50% reduction on import duties for capital goods entering the country. The IMF wishes to eliminate all exemptions except those given to the diplomatic corps. Sources close to the scene told the Listin Diario that, while there was some pressure being exerted to repeal the latest tax reform, nothing would be done until after the municipal and congressional elections of 2006.