Grupo Leon Jimenes, manufacturers of Presidente beer and Marlboro cigarettes in the Dominican Republic, have presented the Partido Reformista Social Cristiano (PRSC) with its proposal for an integrated reform that recommends strengthening the rule of law, raising tax evasion to criminal status, expanding the VAT (ITBIS) base from 50 to 60% and a 20% decrease in government spending. Grupo Leon Jimenes made the presentation to PRSC congressmen in a recent workshop. Their proposal also calls for migration controls and the restructuring of the power sector. The Grupo Leon Jimenes says that the present system is “non-viable.”
The proposal advocates long-term reach of fiscal reform, so that it may also bring about a reduction in public debt, and greater discipline in public spending. Grupo Leon Jimenes is open to applying ITBIS taxes on sugar and cooking oil, while arguing that the basic bread basket should not be taxed any further.
Representing the PRSC were party president Federico Antun Batlle, secretary general Victor Gomez Casanovas, senator Jose Hazim Frappier and several deputies. The National Hotel & Restaurant Association, Foro Social Alternativo, Centro de Estudios Juan Montalvo, free zone associations and labor union Central Nacional de Transportistas Unificados (CNTU) also attended the workshop.
Grupo Leon Jimenes declared that their proposal has a long-term vision and that it focuses on the need for tax reform as part of a national development plan, and not a patch to solve a circumstantial problem.