Minister of Hacienda Simon Lizardo says that the Medina administration will not open discussions for a Taxation Pact, as reported in Diario Libre. In 2012 when he was sworn in, President Medina committed to the pact, one of three. The government has signed an Education Pact after reaching a consensus with the public and private sectors, and has begun discussions for an Electricity Pact this year. Nevertheless, the government will not be discussing a taxation pact as agreed in the 2010-2030 National Development Strategy (Law 1-12). The law gave the government three years to reach a consensus with the public and private sectors in the areas of education, energy and taxation.
Private sectors have called for simplification to support small businesses, but Lizardo said that responsibility for taxation would be left up to the next government, as any revisions suggested by many sectors could affect government revenues. The National Development Strategy ordered the Fiscal Pact to be geared at financing sustainable development and guaranteeing long-term sustainability with a comprehensive taxation review and the passage of a bill for fiscal responsibility for government officials.
Lizardo told Diario Libre: “Some people believe that this government has been marked by wasteful spending. Unfortunately this is an image that we are to blame for as managers and that needs to change in the medium and long term,” he said. “It is something that will take time, for people’s trust to be restored, for government officials to be accountable, for them to keep open books,” he said.
Lizardo expressed his concern that the pact would reduce government revenue. He commented that the fiscal burden is at 14.1%, while there is a lack of confidence in the way the government is managing its resources.
The pact could also reduce tax exemptions to key sectors like free zones and tourism, said Lizardo. He estimated the tax exemptions at around RD$200 billion a year.
http://www.diariolibre.com/destacada/2015/04/13/i1096571_simn-lizardo-habr-pacto-fiscal-esta-gestin-gubernamental.html
http://economia.gob.do/mepyd/estrategia-nacional-de-desarrollo-2030/