The government and the business sector have now reached an agreement on the taxes that are meant to compensate for the estimated RD$31 billion loss of income when the DR-CAFTA accord comes into effect in January 2006. The consequence will be that consumers will have to pay out 86.5% of the taxes. In yesterday’s meeting, the National Dialogue’s commission agreed to broaden the VAT (ITBIS) tax base, increase the selective consumer tax on cigarettes and alcoholic beverages, impose a 2% surcharge on imports as advance payment of income tax and increase income tax for businesses from 25% to 28%. Also included are a 15% ad valorum on the CIF value of vehicles and an additional tax on fuel. The business sector agreed on an income tax deductible 1% tax on company assets. The agreement stipulates that the 0.15% tax on money transactions would continue for three more years but at a progressively lower rate each year. If the social sector does not convince the government otherwise, VAT will begin to be charged on 200 products that up until now have been exempt, such as oil, sugar and coffee. In total, the additional resources expected to be generated by the selective consumer tax could reach RD$23.5 billion. The government agreed to present a bill with the new organic budgeting law that would abolish the use of presidential discretion in the allocation of fiscal surplus. The social and union sectors were not included in this agreement, and they are expected to raise their concerns at the Presidential Palace today. The National Dialogue is coordinated by Msgr. Agripino Nunez Collado, chancellor of PUCMM University.