Just as the Senate did last week, and after only a four-hour debate, the Chamber of Deputies approved the legislative proposal for the Fiscal Reform in its first reading yesterday, Tuesday 6 November. The legislation, which is expected to collect an estimated RD$46 billion in additional funds, will be confirmed during Thursday 8 November’s legislative session. The debates began at 12:21 in the afternoon, and 20 deputies took part amidst incidents that included PRD Deputy Elpidio Infante smashing his laptop because the debates were closed without giving him a turn.
The legislation was passed by the votes of 107 PLD deputies and their allies. There were 74 votes against from the PRD deputies present, and two did not vote (Minou Tavarez Mirabal of the PLD and Sonya Abreu de Romero of the PRD). Guadalupe Valdez of the Alliance for Democracy (APD) voted against the bill.
Proposals for modifications were rejected, including attempts to halt the application of ITBIS to oils, butter, sugar and chocolate on the one hand, and to postpone the decision on the reform project for three weeks on the other.
There was also a motion to challenge the plan to tax Internet purchases of less than US$200. According to experts, a tax on Internet purchases under US$200 would be a violation of the DR-CAFTA treaty.
The increase in taxation has been criticized for serving only to maintain the present high level of wasteful government spending and political patronage.
www.bloomberg.com/news/2012-11-06/dominican-republic-congress-backs-tax-hikes-to-cut-deficit-1-.html
http://www.lalupa.com.do/2012/11/fiscalismo-de-clientelismo/#more
http://www.diariolibre.com/opinion/2012/11/07/i358687_divorcio.html