2013News

Reaction to IMF suggestions

At least two politicians and a legislator rejected the International Monetary Fund (IMF) recommendations issued last Friday, 8 March by the agency’s directors. Marino Collante, the chairman of the Chamber of Deputies Hacienda Commission said that the people have not recovered from the last tax reform, and he doubted that President Medina would accept the IMF suggestion. However, he did say that a profound investigation into the long list of tax exemptions might reveal that many of them should not exist and only contribute to fiscal expenses. He observed that exemptions total over RD$147 billion this year, and the ITBIS tax exemption represents about half of this amount. Eduardo Estrella, the president of the Dominicans for Change party called for changes in the contacts with Barrick Gold and the electricity generators, as well as the arrest and trial of anyone who has stolen from the state before installing new tax adjustments as recommended by the IMF.

Fulgencio Severino, coordinator of the Patria para Todos Movement stated that the IMF was continuing its policy of putting pressure on the people, adding that what the agency should do is call for the revocation of the electricity contracts. Collante said that that tax evasion was a major element, with an estimated 70% Income Tax evasion rate and 33% ITBIS evasion.