During the American Chamber of Commerce meeting held yesterday, Thursday 8 November to publicly discuss the immediate effects of the passing of the tax overhaul on production, several economists said it would rein in the economy during the first six months of the year, but the deceleration would not reach recession levels.
Jose Luis de Ramon, Jochy Vicente, Peter Pratzmowski and Andy Dauhajre spoke during the symposium “Budget Implementation 2012 and Projections for 2013” organized by the American Chamber of Commerce. They estimated that the increase in tax burden would reduce internal consumption.
They said the government had missed the opportunity to carry out a genuine fiscal reform that would set the base for sustainable development in the long term and just applied another fiscal patch that would require new modifications in the short term with another tax reform necessary in two years time, as reported in Listin Diario.
A true fiscal pact could have stimulated production, attacked tax evasion and confronted the problems of public indebtedness that have been requiring budget modifications during the year.
During the talks, it was said that in recent years, the government’s budget management has been characterized by low quality of spending, corruption, impunity, lack of priorities and a lack of definition on how to progressively eliminate the fiscal deficit.
www.listin.com.do/economia-y-negocios/2012/11/8/254409/Economia-bajaria-su-ritmo-de-crecimiento